Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.Huadong Medicine Co. Ltd.2025 Semi-annual Report

August 20 2025

1Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section I Important Notes Table of Contents and Definitions

The Board of Directors directors and senior management of Huadong

Medicine Co. Ltd. (hereinafter referred to as the "Company") hereby

guarantee that the information presented in this report is authentic accurate

and complete and free of false records misleading statements or material

omissions and shall undertake individual and joint legal liabilities.Lv Liang the Company’s legal representative and the officer in charge of

accounting and Qiu Renbo head of the accounting department (accounting

manager) hereby declare that the financial statements in this semi-annual

report are authentic accurate and complete.All directors have attended the Board of Directors meeting to review this

semi-annual report.The future plans development strategies and other forward-looking

statements in this semi-annual report shall not be considered as a substantial

commitment of the Company to investors. Investors and related parties should

be fully aware of the risks and understand the differences between plans

forecasts and commitments.The risks the Company faces in operation include industry policy and

product price reduction risk new drug R&D risk investment and M&A risk

and exchange rate fluctuation risk. For details please refer to "X. Risks faced

by the Company and countermeasures" in "Section III. Management's

Discussion and Analysis". Therefore investors are kindly reminded to pay

attention to possible investment risks.

2Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

The dividend distribution scheme approved at the meeting of the Board of

Directors is as follows: On the basis of 1754021048.00 shares—derived by

excluding 56000.00 restricted stock (pending repurchase and cancellation)

from the existing total share capital of 1754077048.00 shares RMB 3.50

(before tax) of cash dividends per ten shares will be distributed to all

shareholders; a total of 0 bonus shares (before tax) will be issued; and no

capital reserve will be converted to increase the capital stock. This 2025

interim profit distribution scheme falls within the scope authorized by the 2024

Annual Shareholders' Meeting resolution to the Board of Directors and does

not require further approval by the Shareholders' Meeting.According to “Stock Listing Rules of the Shenzhen Stock Exchange” if

listed companies have both Chinese and other language version of public notice

they should ensure the content of both versions are the same. In the case of

discrepancy the original version in Chinese shall prevail.

3Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Table of Contents

Section I Important Notes Table of Contents and De... 2

Section II Company Profile and Key Financial Indic.. 11

Section III Management's Discussion and Analysis.....15

Section IV Corporate Governance Environment and So.. 62

Section V Important Matters..........................72

Section VI Changes in Shares and Shareholders.......113

Section VII Bonds-related Information...............125

Section VIII Financial Reports......................126

Section IX Other Submitted Data.................... 345

4Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Contents of Reference File

(I) Financial accounting statements signed and sealed by the legal representative the person in charge of accounting and the head

of the accounting department (accounting manager).(II) The originals of all Company’s documents publicly disclosed in the press designated by CSRC during the reporting period and

the originals of announcements.

5Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Definitions

Item refers to Definition

CSRC refers to China Securities Regulatory Commission

SZSE refers to Shenzhen Stock Exchange

Huadong Medicine/the Company/our Company refers to Huadong Medicine Co. Ltd.China Grand Enterprises refers to China Grand Enterprises INC.Huadong Medicine Group refers to Hangzhou Huadong Medicine Group Co. Ltd.Zhongmei Huadong refers to Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd.Hangzhou Zhongmei Huadong Pharmaceutical

Jiangdong Company refers to

Jiangdong Co. Ltd.Joyang Laboratories refers to Joyang Laboratories

Jiuyuan Gene refers to Hangzhou Jiuyuan Genetic Biopharmaceutical Co. Ltd.Doer Biologics refers to Zhejiang Doer Biologics Co. Ltd.Chongqing Peg-Bio refers to Chongqing Peg-Bio Biopharm Co. Ltd.Qyuns Therapeutics refers to Qyuns Therapeutics Co. Ltd.Nuoling Bio refers to Nuoling Biomedical Technology (Beijing) Co. Ltd.Meihua Hi-Tech/Anhui Meihua refers to Anhui Meihua Hi-Tech Pharmaceutical Co. Ltd.Wuhu Huaren refers to Wuhu Huaren Science and Technology Co. Ltd.Huida Biotech refers to Zhejiang Huida Biotech Co. Ltd.Perfect mRNA refers to Hangzhou Perfect mRNABiotechnology Co. Ltd.Magic Health refers to Hubei Magic Health Technology Co. Ltd.CARsgen Therapeutics refers to CARsgen Therapeutics Holdings Limited

Jiangsu Nanjing Nongda Animal Pharmaceutical Co.Nanjing Nongda Animal Pharmaceutical refers to

Ltd.Shengji Material refers to Zhejiang Shengji Material Technology Co. Ltd.IMPACT Therapeutics refers to Nanjing IMPACT Therapeutics Co. Ltd.Sinclair refers to Sinclair Pharma Limited

R2 refers to R2 Technologies Inc.MediBeacon refers to MediBeacon Inc.ImmunoGen refers to ImmunoGen Inc.RAPT refers to RAPT Therapeutics Inc.Kylane refers to Kylane Laboratoires SA

High Tech refers to High Technology Products S.L.U.Viora refers to Viora Ltd

Heidelberg Pharma refers to Heidelberg Pharma AG

Kiniksa refers to Kiniksa Pharmaceuticals (UK) Ltd.Arcutis refers to Arcutis Biotherapeutics Inc.GMP refers to Good Manufacturing Practice

cGMP refers to Current Good Manufacturing Practice

GSP refers to Good Supply Practice

BE refers to Bioequivalence

Center for Drug Evaluation of National Medical

CDE refers to

Products Administration

6Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

MAH refers to Marketing Authorization Holder

FDA refers to U.S. Food and Drug Administration

NMPA refers to National Medical Products Administration

IPO refers to Initial Public Offering

API refers to Active Pharmaceutical Ingredient

Drug Master File a confidential dossier prepared by the

holder on a precautionary basis which contains

comprehensive details about facilities manufacturing

processes and materials involved in the preparation

processing packaging and storage of one or more

DMF refers to

human drug products. The contents of a DMF may only

be referenced by the FDA during its review of IND

applications NDAs and ANDAs upon receipt of a

Letter of Authorization from either the DMF holder or

their legally authorized representative.NHSA refers to National Healthcare Security Administration

Key Opinion Leader individuals who possess extensive

and more accurate information about products. They are

KOL refers to recognized and trusted by a relevant community and

have significant influence over the purchasing decisions

of that group.NDA refers to New DrugApplication

BLA refers to Biologics License Application

Abbreviated New Drug Application (i.e. Generic Drug

ANDA refers to

Application)

The EU’s certification for products indicates that the

products meet the requirements of relevant EU

directives. It also serves as evidence that the products

CE certification refers to have undergone the corresponding conformity

assessment procedures and that the manufacturer has

made a declaration of conformity. This certification

shows that the products can be sold in the EU market.MDR refers to Medical Devices Regulation (EU) 2017/745

International Council for Harmonisation of Technical

ICH refers to

Requirements for Pharmaceuticals for Human Use

IND refers to Investigational New Drug

PK/PD refers to Pharmacokinetics/pharmacodynamics

Chemistry Manufacturing and Controls

mainly involving pharmaceutical researches such as

CMC refers to manufacturing technology impurity research quality

research and stability research during drug research and

development.Contract Manufacturing Organization which provides

services such as customized manufacturing of medical

CMO refers to

intermediates APIs and pharmaceutical preparations

entrusted by pharmaceutical companies.Contract Development and Manufacturing Organization

which offers customized R&D and production services

for multinational pharmaceutical companies and

biotechnology companies such as process R&D and

CDMO refers to

preparation process optimization scale-up

manufacturing registration and validation batches

manufacturing and commercial manufacturing of

medicines especially innovative drugs.

7Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

QA refers to Quality Assurance (department)

ADC refers to Antibody-Drug Conjugates

EBD refers to Energy Based Device

license-in refers to Product License-in

license-out refers to Product External License Authorization

BD refers to Business Development

Earnings Before Interest Taxes Depreciation and

EBITDA refers to

Amortization

EHS refers to Environment Health and Safety Management System

MRCT refers to Multi-regional Clinical Trials

ESG refers to Environmental Social and Governance

Over-the-counter i.e. medicines published by the

medical products administration under the State Council

OTC refers to and purchased and used by consumers at their discretion

without the prescription of practicing doctors or

assistant practicing doctors.PFS refers to Progression-free survival

DTP refers to Direct to Patient

Computer-Aided Drug Design a drug design method

CADD refers to

based on computer technology.Artificial Intelligence-Driven Drug Design a method

that applies artificial intelligence (AI) technology for

drug development. In AIDD AI algorithms are utilized

AIDD refers to

to analyze large-scale molecular structure data helping

to predict intermolecular interactions and their

therapeutic effects on diseases.GLP-1 refers to Glucagon-like Peptide-1

Medical SPD (Supply Processing Distribution)-based

Management is a typical lean management model

developed under the guidance of the integrated supply

chain concept. With the purpose of ensuring the quality

and safety of medical consumables within hospitals and

meeting clinical needs supported by logistics

SPD refers to information technology and specialized process

management it strengthens the full-process supervision

of the hospital's medical consumables management

department coordinates external and internal demands

and implements a centralized logistics management

model for the supply processing and distribution of

medical consumables throughout the hospital.Drugs that can only be purchased and used with a

Prescription Drugs refers to

prescription issued by a physician

Real World Research/Study RWR/RWS involves

collecting data related to patients in real-world

RWR/RWS refers to environment (real-world data) and analyzing it to obtain

the use value of medical products and clinical evidence

of potential benefits or risks (real-world evidence).Catalogue of Medicines Covered by National Basic

2024 Medicine Catalog refers to Medical Insurance Work-related Injury Insurance and

Maternity Insurance (2024)

Reporting period refers to From January 1 2025 to June 30 2025

8Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section II Company Profile and Key Financial Indicators

I. Company profile

Stock name (abbreviation) Huadong Medicine Stock code 000963

Stock listed on Shenzhen Stock Exchange

Company name in Chinese 华东医药股份有限公司

Company name in Chinese

(abbreviation if any) 华东医药

Company name in English (if

HUADONG MEDICINE CO. LTD

any)

Company name in English

HUADONG MEDICINE

(abbreviation if any)

Legal representative of the

Lv Liang

Company

II. Contact person and contact information

Secretary of the Board of Directors Securities affairs representative

Name Chen Bo Hu Shufen

New Office Building of Huadong New Office Building of Huadong

Medicine No. 858 Moganshan Road Medicine No. 858 Moganshan Road

Contact address

Gongshu District Hangzhou Zhejiang Gongshu District Hangzhou Zhejiang

CHINA CHINA

Tel. +86 571-89903300 +86 571-89903300

Fax +86 571-89903366 +86 571-89903366

Email address ir@eastchinapharm.com ir@eastchinapharm.com

III. Other information

1. Company contact information

Whether the Company's registered address office address and its postal code website or email address have changed during the

reporting period

□Applicable □Not applicable

Floors 4/7 No. 439 Zhongshan North Road Gongshu District

Registered address of the Company

Hangzhou Zhejiang

Postal code of the registered address 310006

New Office Building of Huadong Medicine No. 858

Office address of the Company

Moganshan Road Gongshu District Hangzhou Zhejiang

Postal code of office address 310011

Company website www.eastchinapharm.com

Email address of the Company ir@eastchinapharm.com

Query date of the temporary announcement on the designated

August 20 2025

website (if applicable)

9Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Query index of the temporary announcement on the designated

www.cninfo.com.cn

website (if applicable)

2. Information disclosure and storage location

Has the information disclosure and storage location changed during the reporting period

□Applicable□Not applicable

The stock exchange website and media names and URLs where the Company discloses its semi-annual reports as well as the

storage location of the semi-annual reports remained unchanged during the reporting period. For details please refer to the 2024

Annual Report.

3. Other relevant information

Has any other relevant information changed during the reporting period

□Applicable□Not applicable

IV Key accounting data and financial indicators

Does the Company need to retroactively adjust or restate the accounting data of previous years

□Yes□No

Increase or decrease during

the current reporting period

Current reporting period Same period last year

compared with the same

period of last year

Operating revenue (RMB) 21674928965.21 20965065605.67 3.39%

Net profit attributable to

shareholders of the listed 1814826860.86 1696020589.20 7.01%

company (RMB)

Net profit attributable to

shareholders of the listed

company after deduction of 1761734255.98 1625200244.09 8.40%

non-recurring gains and

losses (RMB)

Net cash flow from operating

2456848510.102275256481.447.98%

activities (RMB)

Basic earnings per share

1.02930.96756.39%

(RMB/share)

Diluted earnings per share

1.03460.96866.81%

(RMB/share)

Weighted average return on

7.62%7.80%-0.18%

equity

Increase or decrease at the

End of the current reporting end of the current reporting

End of the last year

period period compared with the end

of the last year

Total assets (RMB) 38815448940.78 37879046367.15 2.47%

Net assets attributable to

shareholders of the listed 23751917398.00 23060051397.36 3.00%

company (RMB)

10Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Total share capital of the Company as of the trading day prior to disclosure:

Total share capital of the Company as of the trading day prior

1754077048.00

to disclosure (shares)

Fully diluted earnings per share based on the latest share capital:

Preferred share dividends paid 0.00

Perpetual bond interest paid (RMB) 0.00

Fully diluted earnings per share based on the latest share capital

1.0346

(RMB/share)

V. Differences in accounting data under domestic and foreign accounting standards

1. Differences between net profit and net assets in the financial report disclosed in accordance with the

International Accounting Standards and the Chinese Accounting Standards

□Applicable□Not applicable

During the reporting period there is no difference between the net profit and net assets in the financial report disclosed in

accordance with the International Accounting Standards and the Chinese Accounting Standards.

2. Differences between net profit and net assets in the financial report disclosed in accordance with

overseas accounting standards and Chinese accounting standards

□Applicable□Not applicable

During the reporting period there is no difference between the net profit and net assets in the financial report disclosed in

accordance with the overseas accounting standards and the Chinese accounting standards.VI. Items and amounts of non-recurring gains/losses

□Applicable □Not applicable

Unit: RMB

Item Amount Description

Gains and losses on disposal of non-

current assets (including the write-off of -8068730.40

provision for impairment of assets)

Government grants included in the

current profits and losses (except those

that are closely related to the normal

business operation of the Company For details of government grants please

comply with national policies and 130856898.02 refer to XI of the Notes to this financial

regulations are enjoyed in accordance report

with the defined criteria and have a

lasting impact on the Company's profits

and losses)

Reversal of impairment provision of

receivables individually tested for 100000.00

impairment

Other non-operating revenue and For details of non-operating revenue and

expenses other than those mentioned -48135345.99 expenses please refer to VII (74 75) of

above the Notes to this financial report

11Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Other gain and loss items conforming to

Refer to VII (70) of the Notes to this

the definition of non-recurring gains and -6672178.39

financial report for details

losses

Less: Amount affected by income tax 10611490.62

Amount affected by minority

4376547.74

interests (after tax)

Total 53092604.88

Details of other gain and loss items conforming to the definition of non-recurring gains and losses

□Applicable □Not applicable

As the operation of Huadong Ningbo Medicine Co. Ltd. expired on December 31 2021 and it is currently in the liquidation phase

it is no longer included in the consolidated financial statements of the Company. The Company's investment in it is classified as

other non-current assets. During the current period the Company recognized an investment income of RMB -6672178.39 during

the liquidation period based on its shareholding ratio.An explanation of the fact that the non-recurring gain and loss items listed in the Explanatory Announcement No.1 on Information

Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains and Losses are defined as recurring gain and

loss items

□Applicable□Not applicable

The Company did not define the non-recurring gain and loss items listed in the Explanatory Announcement No.1 on Information

Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains and Losses as recurring gain and loss items.

12Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section III Management's Discussion and Analysis

I. Main business of the Company during the reporting period

(I) Main business of the Company

Huadong Medicine Co. Ltd. (stock code: 000963) was founded in 1993 and is headquartered

in Hangzhou Zhejiang. The company was listed on the Shenzhen Stock Exchange in December

1999. With its businesses covering the entire pharmaceutical industry chain thanks to over 30 years

of vigorous development the Company has now fostered four major business segments of the

pharmaceutical industry pharmaceutical business aesthetic medicine and industrial microbiology

and has been a large comprehensive listed pharmaceutical enterprise specialized in pharmaceutical

R&D production and marketing.Specialized in the R&D production and marketing of specialized medicines medicines for

chronic diseases as well as special medicines for years the Company ’ s pharmaceutical industry

segment has established complete international pharmaceutical production systems and fostered

core product lines focusing on chronic nephrosis autoimmunity oncology endocrinology digestive

system cardiovascular system and other fields. With multiple first-line clinical medicines with

market advantages in China the Company has won international certifications for multiple varieties

of its products. The Company has strategically focused its R&D efforts on innovative drugs within

three core therapeutic fields of endocrinology autoimmunity and oncology through a combination

of in-house development external partnerships and collaborative projects fostering a differentiated

innovative medicine pipeline that spans the entire R&D life cycle and a robust product portfolio.Moreover the Company has established strategic partnerships with numerous multinational

innovative medicine R&D companies and pharmaceutical companies on products in the Chinese

market.The Company’s pharmaceutical business segment focused on three core businesses of

medicines medical devices and decoction pieces. Supported by an intelligent logistics network

(three major hubs in Hangzhou Jinhua and Wenzhou 13 logistics warehouses with total storage

area exceeding 190000 square meters) it enhances competitiveness through characteristic logistics

such as cold chain special drugs and vaccines. Its business scale ranks as the leader in Zhejiang

ranking among China’s Top 10 pharmaceutical wholesale enterprises. As for medicines the

Company has comprehensive strengths in full-product and full-channel coverage efficient hospital-

institution coordination and coordinated distribution and agency operations. With regard to medical

13Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

devices the Company leverages a large-scale distribution network to support specialized agency

operations with a focus on innovative businesses. For the decoction pieces segment it benefits

from full-industry-chain advantages and continues to expand its business across the province

through efficiency upgrades and capacity expansion. With digitalization and innovative services as

core drivers the Company integrates CSO partnerships SPD supply chain management and

industry-university-research projects to build an "integrated pharmaceutical service" ecosystem

precisely connecting upstream and downstream needs. Simultaneously it focuses on three strategic

pillars—organizational efficiency cost control and regional penetration—to continuously

consolidate its industry-leading position.In terms of aesthetic medicine the Company has created a comprehensive and differentiated

product matrix by following the strategy of "global operation layout and dual-circulation operation

& development" with an international vision and forward-looking layout and now ranks at the

forefront of the industry in terms of product quantity and coverage. Specifically over 20 products

have been launched in China and abroad and more than a dozen innovative global products are in

development. Fostering differentiated product lines that cover three major injectable categories —

regenerative hyaluronic acid and botulinum toxin the Company is committed to becoming a global

leading aesthetic medicine comprehensive solution provider by offering patients with more

professional efficient comprehensive and safer integrated solutions through diversified combined

therapy techniques that combine "noninvasive and micro-invasive" "facial and body filling" and

"injection + energy-based device". Sinclair its wholly-owned subsidiary is the Company’s global

aesthetic medicine platform. Sinclair is headquartered in the UK and operates multiple R&D centers

and production bases globally. Promoting and marketing PCL microspheres for injection

hyaluronic acid facial thread lifting and other products in global markets Sinclair researches

develops and expands its businesses of energy-based devices through its wholly-owned subsidiaries

High Tech and Viora. As for the aesthetic medicine segment the Company also has Sinclair

(Shanghai) a wholly-owned subsidiary and its market operation platform in China as well as R2 in

the U.S. and Kylane in Switzerland two overseas technical development-type joint stock companies.The Company’s industrial microbiology segment focuses on two key directions of synthetic

biotechnology innovation and bio-pharmaceutical industry advancement prioritizing the

development of four core business segments: xRNA raw materials featured APIs & intermediates

massive health & biomaterials and animal health. After four decades of development the Company

has established a research matrix anchored by Industrial Microbiology of Zhongmei Huadong

synergized with HIT Institute of Synthetic Biology Huida Biotech Perfect mRNA and Shengji

Material. This framework integrates full-chain technological capabilities in microbial engineering

14Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

maintaining an R&D and production system that spans the entire life cycle of microbial-derived

medicines alongside interdisciplinary R&D platforms and industrial resource networks. As for its

industrial layout the Company operates seven coordinated industrial bases in Hangzhou

Xiangfuqiao Qiantang New Area Jiangsu Joyang Laboratories Magic Health Anhui Meihua

Wuhu Huaren and Nanjing Nongda Animal Pharmaceutical. Moreover the Company has set up the

largest fermentation monomer plants in Zhejiang and formed the industry-leading intelligent

production system that covers all stages from strain screening and process development to scale

production. With a complete manufacturing ecological chain that encompasses technological R&D

pilot-scale amplification engineering conversion and quality control the Company sustains its

industry leadership in fermentation scale and process technology.(II) Overview of company operations during the reporting period

In the first half of 2025 the global geopolitical landscape became increasingly complex and

volatile. Competition and rivalry in the field of international economy and trade continued to

escalate with unilateral measures such as tariff barriers evolving constantly. This not only triggered

profound restructuring of global supply chains but also subjected the multilateral trading system to

unprecedented challenges. Against this backdrop the momentum for global economic growth

weakened significantly and various unstable and uncertain factors intertwined making the global

development environment far more complex and severe. In stark contrast China adhered to

implementing more proactive and effective macroeconomic policies. Its national economy

maintained an overall stable operation and continued to move toward positive development on the

foundation of stability fully demonstrating the strong resilience and vigorous vitality of the Chinese

economy.

2025 marks the first year of the Company's eighth three-year plan and more importantly a

pivotal transitional period to embark on a new phase of transformative and innovative development.Amid the complex and challenging Chinese and foreign political and economic landscape as well

as the profound structural adjustments underway in China's pharmaceutical industry all employees

of Huadong Medicine have remained steadfast in aligning with the overarching strategic plan and

annual business objectives. Guided by the principles of "upholding the entrepreneurial spirit further

deepening reforms forging a robust organizational system and seizing development opportunities"

we have forged ahead under pressure focused on breakthroughs and took proactive steps in the

fiercely competitive market to ensure the solid implementation of key initiatives. During the

reporting period the Company achieved steady improvements in operational quality and efficiency

maintained a positive development trajectory and continuously enhanced its core competitiveness.It not only successfully met the primary business targets but also delivered a mid-year performance

15Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

report that reflects high-quality development.In the first half of 2025 the Company recorded total operating revenue of RMB 21.675 billion

representing a year-on-year increase of 3.39% (3.12% growth in Q1); net profit attributable to

shareholders reached RMB 1.815 billion up 7.01% year-on-year (6.06% growth in Q1); and net

profit attributable to shareholders excluding non-recurring gains and losses amounted to RMB

1.762 billion an 8.40% increase year-on-year (7.04% growth in Q1). The Company's overall

operations maintained a stable and upward trend with quarterly improvements laying a solid

foundation for achieving the annual business targets.Specifically in Q2 2025 the Company achieved total operating revenue of RMB 10.939

billion a year-on-year increase of 3.65%; net profit attributable to shareholders of the listed

company was RMB 900 million a year-on-year increase of 7.98%; and net profit attributable to

shareholders of the listed company after deducting non-recurring gains and losses was RMB 864

million a year-on-year increase of 9.85%.Operation and development of the four major business segments of the Company during the

reporting period:

1. Pharmaceutical industry segment

During the reporting period the core subsidiary Hangzhou Zhongmei Huadong Pharmaceutical

Co. Ltd. (Zhongmei Huadong) maintained robust growth momentum recording an operating

revenue of RMB 7.317 billion (including CSO business) a year-on-year increase of 9.24% and

achieving a net profit attributable to the parent company’s shareholders of RMB 1.580 billion up

14.09% year-on-year with a return on equity (ROE) of 12.16%.

In Q2 alone the operating revenue reached RMB 3.696 billion a year-on-year increase of

12.04% and the net profit attributable to the parent company’s shareholders was RMB 737 million

up 16.34% year-on-year.Zhongmei Huadong’s commercialization pipeline of innovative pharmaceutical products has

continued to expand covering key therapeutic areas such as oncology endocrinology and

autoimmunity. Representative products include Nesina (Alogliptin Benzoate Tablets) Liluping

(Liraglutide Injection) Huiyoujing (Ganagliflozin Proline Tablets) Sailexin (Ustekinumab

Injection) as well as Elahere (Mirvetuximab Soravtansine Injection) and Saikaize

(Zevorcabtagene Autoleucel Injection) a CAR-T product.During the reporting period driven by the incremental contributions from newly approved

products the revenue from innovative product businesses continued to climb with combined sales

and agency service revenue for the period reaching RMB 1.084 billion a remarkable year-on-year

increase of 59% signaling the entry into a phase of rapid growth.

16Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

The deepening of the innovation transformation strategy is propelling Zhongmei Huadong into

a pivotal stage of results realization and value release. The continuous expansion of the innovative

product portfolio and breakthroughs in commercialization are injecting strong momentum into

Zhongmei Huadong’s sustained future performance.During the reporting period Zhongmei Huadong Pharmaceutical Service Corporation (the

Corporation) adhered to the core philosophy of “Innovation Professionalism and Service” with

“Problem-Solving and Value Creation” as the management benchmark proactively adapting to

market changes. By focusing on the development of pharmaceutical services and digital marketing

systems the Corporation comprehensively enhanced product promotion and service efficiency

having achieved significant progress in its transformation journey. By deepening its presence in

niche markets expanding into lower-tier markets and implementing differentiated promotion

strategies the Corporation continuously improved market penetration and hospital coverage for key

and leading products further strengthening its market competitiveness.In terms of market strategy the Corporation fully advanced a comprehensive multi-channel

strategy achieving breakthroughs across multiple dimensions. In the hospital market the Company

consolidated its leading position through product reputation and professional services both tapping

the potential of established products and enhancing academic marketing to accelerate new drug

adoption and prescription growth. With the sequential launch of innovative products diversifying its

portfolio the Corporation can provide more precise and personalized treatment options for different

patients. In the non-hospital and primary care markets the Corporation aligned with the progressive

implementation of tiered healthcare policies penetrated community and township healthcare

institutions by constructing a primary medical service network and enhanced product awareness

and accessibility by means of diversified promotion and commercial collaboration. In the retail

market the Corporation strengthened channel development across online platforms OTC markets

and DTP pharmacies: optimizing the medication purchase process through partnerships with major

e-commerce platforms to enable precise drug information delivery and convenient purchasing;

intensifying brand promotion in the OTC market to boost market share via advertising and point-of-

sale promotions. Concurrently the Corporation continued to refine its regional marketing

departments and KA systems reinforcing product competitiveness through academically-driven and

medically-led strategies. Through collaborations with Chinese and foreign research institutions and

universities the Corporation conducted post-marketing evidence-based medical research on new

indications for key products providing robust clinical evidence to support their clinical application.The Corporation advanced organizational transformation by continuously optimizing its structure

strengthening talent cultivation and external recruitment and promoting the professional

17Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

development of the pharmaceutical service team to establish a robust talent pipeline.During the reporting period the sales of newly approved innovative drugs continued to rise

becoming one of the core drivers of sustained growth in the pharmaceutical industry. Since its

launch the CAR-T product Zevorcabtagene Autoleucel Injection (trade name: Saikaize) has

dominated the market with excellent clinical safety and efficacy feedback. In the first half of 2025

Saikaize was certified and registered in medical institutions across more than 20 provinces and

municipalities nationwide and the Corporation has placed 111 valid orders with its partner

CARsgen Therapeutics. Concurrently the Corporation actively pursued collaborations with medical

insurance and Huiminbao programs. As of the release of the Report over 100 insurance and Huimin

insurance programs have included Saikaize in their reimbursement category significantly

alleviating the financial burden of patients. Looking ahead Saikaize is expected to maintain rapid

growth considering the continuous market expansion and increased coverage under regional

Huiminbao programs and commercial insurance plans.Since the Category 1 innovative product Ganagliflozin Proline Tablets (Huiyoujing) was

included in the updated National Reimbursement Drug List (NRDL) the promotion team of

Zhongmei Huadong Pharmaceuticals Service Corporation has made active hospital access efforts

and the number of tiered hospitals covered at present has exceeded 1200 laying a solid foundation

for subsequent rapid growth. Additionally multiple national and regional large-scale clinical trials

have been conducted including real-world studies (RWS) and various clinical studies on

complications/comorbidities in patients with type 2 diabetes (T2DM). In product promotion

effective synergy has been achieved by sharing resources with Metformin Hydrochloride and

Empagliflozin Tablets (Enshuangping) consolidating the Corporation's core competitiveness in the

SGLT-2 inhibitor segment for diabetes.Mirvetuximab Soravtansine Injection (ELAHERE) is the world's first and only FDA-

approved ADC targeting FRα-positive platinum-resistant ovarian cancer. It is also the first and only

global innovative drug to demonstrate dual benefits in both progression-free survival (PFS) and

overall survival (OS) earning the exclusive I-level recommendation from authoritative guidelines

worldwide. The product has been approved and the Corporation is actively conducting sales team

training with plans to launch its formal commercial sales in China in Q4 2025. It has previously

achieved pilot implementation in the Hainan Boao Lecheng Pilot Zone and conducted real-world

studies for platinum-resistant ovarian cancer at the Ruijin Hainan Hospital. In August 2024

Elahere was approved under the innovative "Hong Kong-Macao Drug and Device Access" policy

and introduced in the Guangdong-Hong Kong-Macao Greater Bay Area enabling patients to

receive integrated diagnosis and treatment at designated hospitals in the area. During the reporting

18Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

period the product generated sales revenue of approximately RMB 30 million in the

aforementioned area.Since its approval and market launch in November 2024 the Corporation's Ustekinumab

Injection SAILEXIN has demonstrated consistently excellent market performance. The

pharmaceutical services team has deeply explored the product's outstanding advantages in terms of

ease of use drug safety and accessibility under medical insurance reimbursement. By leveraging

shared resources and close collaboration with the Corporation's existing autoimmune product line it

has established effective synergies. As of June 30 2025 the number of hospitals that have

prescribed the product exceeds 1200 with market sales gradually increasing. Through initiatives

such as soliciting outstanding case studies launching public welfare science popularization projects

organizing multi-level and multi-dimensional online and offline academic seminars and conducting

nationwide multi-center real-world studies (RWS) the Corporation has expanded the product

influence and optimized clinical medication practices. SAILEXIN is expected to become a new

core product in the Corporation's autoimmune disease field.In January 2025 the Corporation's exclusively marketed novel 1.5-generation PARP inhibitor

Senaparib Capsules (trade name: Paishuning) was approved for marketing by the National

Medical Products Administration and is now commercially available. To enhance market access and

patient affordability the Corporation has implemented multiple key initiatives: on the one hand it

has accelerated the listing of drugs on official procurement platforms and the hospital access

process. Currently it has completed the layout of over 200 DTP pharmacies covering more than

600 medical institutions and built a multi-level drug supply network; on the other hand the

Corporation actively promotes the inclusion of the product in insurance programs. It has

successfully incorporated the product into regional Huiminbao programs (e.g. West Lake Yilianbao

(Hangzhou) Shanghai Huibao Chonghuibao (Nanchong) Jiaxing Huiminbao and CPIC-Shanghai

Xiangbao) as well as other commercial insurance programs effectively reducing the financial

burden on patients. Meanwhile the Corporation is actively advancing various preparatory works for

Paishuning to be included in the National Reimbursement Drug List through negotiation. This lays

a solid foundation for the product to achieve rapid sales growth after its inclusion in the medical

insurance system helping more patients benefit from this innovative treatment regimen.During the reporting period Huadong Medicine (Guizhou) Pharmaceutical Co. Ltd.(hereinafter referred to as "Guizhou Corporation") established a professional self-operated

promotion team to vigorously advance the market access of its core product Shangkeling in large

and medium-sized hospitals while continuously expanding the coverage of retail pharmacies and

sales promotion reach. As of now access has been secured in over 760 tiered hospitals nearly 3000

19Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

primary healthcare institutions have been covered and retail pharmacy coverage has exceeded

80000 achieving large-scale expansion of the channel network. Leveraging the deepened channel

layout Guizhou Corporation experienced explosive growth in overall operations: The operating

revenue during the reporting period reached RMB 102.11 million representing a year-on-year

increase of 188% and the net profit was RMB 27.54 million surging over 300% year-on-year.Looking ahead Zhongmei Huadong will fully capitalize on the unique advantages of Shangkeling

as an external preparation of traditional Chinese medicine and its"dual-status" attribute (available

both as a prescription drug and an over-the-counter drug) positioning it as a core driver for

breakthrough out-of-hospital sales. By synergizing efforts across tiered hospitals primary

healthcare institutions and the out-of-hospital market the Corporation will systematically enhance

the comprehensive marketing capabilities of its pharmaceutical team. Concurrently initiatives such

as collecting typical case studies conducting nationwide multi-center clinical research on

osteoarthritis and exploratory comparative studies on soft tissue injuries will strengthen

multidisciplinary penetration. Additionally diversified scenario marketing—including health runs

and sports event sponsorships—will bolster brand influence laying a solid foundation for the future

market promotion of the Corporation’s external product portfolio.During the reporting period the Company's production team closely adhered to the

development goals of "high quality and high efficiency" driving the transformation and upgrading

of the production management system through systematic innovation and refined operations. On the

one hand the Company continued to advance cost-reduction and efficiency-enhancement initiatives

optimizing operational efficiency across multiple dimensions by refining cost control and

improving per-capita output. On the other hand it leveraged artificial intelligence technology to

drive a second wave of innovation in production management models actively advancing workshop

automation unmanned distribution systems electronic inspection processes and the

implementation of intelligent projects such as the Lims MES and EQMS systems injecting new

digital momentum into production processes.The construction of Area I of the Huadong Medicine Bio-Innovation Intelligence Center was

completed in June 2025 with equipment debugging in its final stages. This area focuses on the

commercial production of ADCs (antibody-drug conjugates) peptides and antibody products.Supported by internationally standardized QC laboratories integrated warehousing centers and

R&D facilities it is designed to meet full-chain needs from clinical sample preparation to large-

scale production. The construction of Area II commenced in June 2025 emphasizing critical

auxiliary facilities such as hazardous chemical warehouses Class A workshops and environmental

treatment systems which are planned to be completed and put into use by June 2026. Upon the

20Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

overall completion of the project a comprehensive biopharmaceutical industrialization platform

covering R&D production and logistics will be formed to support the technology transfer of the

Company's global innovation and R&D ecosystem. Huadong Medicine's Synthetic API Base Project

(Xi'an Bohua) also broke ground in June 2025. Designed in line with international standards the

project plans to build three intelligent production lines covering 20 types of high-end APIs for

cardiovascular cerebrovascular and anti-tumor therapies. This initiative will strengthen the

Company's full-chain capacity layout in synthetic biology and form strategic synergy with the Bio-

Innovation and Intelligent Manufacturing Center. The smooth progress of key new production

projects marks a new stage in the industrialization capability of the Company within the biologics

and synthetic API sectors. By establishing a dual-driven production matrix of "biologics intelligent

manufacturing + synthetic APIs" the Company can provide full-cycle production capacity support

from clinical development to commercialization for its pipeline of over 80 innovative drugs under

development (including key varieties such as ADCs and GLP-1).During the reporting period the Company's R&D investment in the pharmaceutical industry

(excluding equity investment) reached RMB 1.484 billion a year-on-year increase of 33.75% of

which direct R&D expenditure was RMB 1.174 billion a year-on-year increase of 54.21%

accounting for 15.97% of the pharmaceutical industry revenue. The Company's innovative drug

R&D center is advancing the development of over 80 innovative drugs in its pipeline with multiple

positive results achieved in the first half of 2025. For details please refer to the "(III) R&D" section

below.

2. Pharmaceutical business segment

From January to June 2025 Huadong Medicine’s pharmaceutical business segment faced dual

pressures of payment-side cost control and structural adjustment of the market. By adopting a dual-

driver strategy covering both in-hospital and out-of-hospital markets while prioritizing the

expansion of diversified businesses and operational efficiency improvements the segment

continued to solidify its foundation for steady development. Overall the Company maintained

stable growth achieving operating revenue of RMB 13.947billion (a year-on-year increase of

2.91%) and net profit of RMB 226 million (a year-on-year increase of 3.67%).

During the reporting period the Company focused on its core operational strategy of

"preserving existing business driving incremental growth and improving labor efficiency."

Leveraging "innovative business innovative products and innovative models" it deepened the

iterative upgrade of full-spectrum service capabilities in pharmaceuticals medical devices and

decoction pieces. For the pharmaceutical business it strengthened its responsiveness to centralized

procurement orders and systematically optimized order fulfillment rates. It also pioneered a

21Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

traceability code policy response system securing core market shares in leading hospitals while

proactively adapting to the new landscape of pharmaceutical distribution in retail and non-public

medical markets post full implementation of drug traceability codes. Additionally it strategically

advanced the professional transformation of retail pharmacies with a focus on new changes in

prescription acceptance for DTP pharmacies. In the medical device business the Company

completed the strategic reorganization of its new business division. Leveraging its large-scale

distribution network it expanded its professional agency system—focusing on stabilizing market

share in core medical equipment segments building brand recognition in the age-appropriate health

industry and facilitating the implementation of projects such as integrated operating rooms.Simultaneously it actively seized new opportunities arising from the reform of hospital SPD models.In the decoction pieces business the Company deepened its refined management across the entire

industrial chain and strategically launched two new decoction centers in "Central Zhejiang (Jinhua)"

and "Southern Zhejiang (Wenzhou)." Through the upgrading of decoction technologies and the

iteration of automated production lines for decoction piece processing it significantly improved

production efficiency and quality stability effectively meeting the standardized fulfillment

requirements for provincial centralized procurement.Breakthroughs in strategic synergy for innovative businesses: In terms of retail service

evolution the Company deepened the development of professional pharmaceutical service

capabilities with a focus on enhancing "integrated pharmaceutical service capabilities." It focused

on hospital-affiliated specialty pharmacies launched dual-channel access (medical institutions and

retail pharmacies) and improved profitability. In terms of CSO value extension it focused on high-

growth market segments such as blood products providing upstream and downstream clients with

full-lifecycle service solutions covering product access support clinical academic training and

prescription volume management. Meanwhile it expanded into oncology projects explored the

aesthetic medicine market in public medical institutions and built up its agency business for

aesthetic medicine products such as botulinum toxins and premium hyaluronic acid. Continuous

reconstruction and upgrading of core supporting capabilities: In terms of supply chain hard power

leap the regional intelligent logistics hub has completed the functional upgrade of multi-warehouse

collaboration the cold chain distribution network was expanded and capabilities for circulation

guarantee of vaccines specialty drugs and nuclear medicines were strengthened. In terms of digital

upgrades the business system was fully migrated online to integrate the entire order processing

workflow enhancing the responsiveness of pharmaceutical services. In terms of organizational

efficiency improvement through business architecture integration it simultaneously optimized

centralized procurement costs and launched a special campaign to clear accounts receivable

22Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

thereby improving capital turnover efficiency. Leveraging its rapid policy response mechanism in-

depth strategic cooperation with top-tier hospitals and refined regional market operations the

Company's pharmaceutical business sector has driven the transformation of its business model—

from a traditional distributor to a value-added service platform. Within the framework of policy

compliance it is exploring innovative growth drivers including the linkage between in-hospital and

out-of-hospital markets the integration of wholesale and retail businesses the convergence of

pharmaceutical and medical device services and the expansion of intelligent decoction services for

decoction pieces.

3. Aesthetic medicine segment

Amid external pressures such as global macroeconomic fluctuations and market demand

adjustments the medical aesthetics industry has entered a phase of slowing growth under pressure.During the reporting period the Company's aesthetic medicine segment achieved total operating

revenue of RMB 1.112 billion (excluding internal offset factors) reflecting a certain year-on-year

decline.Sinclair one of Huadong Medicine’s wholly-owned subsidiaries and the global operating

platform of the Company’s aesthetic medicine business based in the UK proactively expanded sales

of its aesthetic medicine injectable filler products and EBD products globally. Affected by multiple

factors such as sluggish global economic growth fluctuating external demand for EBD business

and internal adjustments Sinclair achieved sales revenue of approximately RMB 524 million during

the reporting period representing a 7.99% year-on-year decrease with its overall operations met

phased targets. In the second quarter sales revenue reached approximately RMB 286 million a

year-on-year decrease of 4.08% but a quarter-on-quarter increase of 19.96% compared to the first

quarter.During the reporting period Sinclair the Company's wholly-owned subsidiary in domestic

aesthetic medicine achieved operating revenue of RMB 543 million a year-on-year decrease of

12.15% with a quarter-on-quarter growth of 14.16% in Q2 2025 compared to Q1 marking two

consecutive quarters of positive sequential growth. Despite the domestic aesthetic medicine

industry remaining in a phase of ongoing adjustment due to accelerated consumer demand shifts

and intensified market competition the Company's domestic aesthetic medicine business continues

to demonstrate strong operational resilience. With the upcoming approval and commercialization of

several key aesthetic medicine products the product portfolio of Sinclair will be further improved

and enriched marking the potential commencement of its new growth cycle.During the reporting period Sinclair with the Company’s brand as the driver continued to

strengthen the product layout of its injectable pipeline and drove synergistic development across

23Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

multiple sub-brands. By maintaining collaboration with the global R&D team and adhering to the

principle of prioritizing professional medical standards it enhanced its influence among B-end

institutions and its reputation among C-end consumers establishing a brand image of

"professionalism aesthetics and premium". As of now the company’s three new second-generation

Ellansé products—Ellansé Zhenyan Ellansé Jinyan and Ellansé Zhizhen—have been

introduced and promoted in nearly 500 medical aesthetic institutions garnering strong market

acclaim. Additionally to better meet differentiated channel demands and enhance market

penetration of medical aesthetic services Sinclair launched the classic version of Ellansé in 2025

targeting market access in public hospitals and customized product development for specific

strategic partners. MaiLi Extreme (trade name: MaiLi Shuoying) a new premium lidocaine-

containing sodium hyaluronate filler for injection was officially commercialized in May 2025.Originating from Switzerland MaiLi is the world’s first premium injectable hyaluronic acid

product featuring OxiFree "oxygen-free" cross-linking technology. Since its launch the EBD

products from the company have been widely favored by numerous institutions and customers. To

date over 300 institutions have introduced the Glacial spa or Reaction devices. Additionally the

next-generation Renotion was officially released in May garnering significant acclaim from

doctors and experts. In the first half of 2025 the overall terminal sales of EBD products achieved

substantial year-over-year growth. Furthermore the Company is actively advancing the domestic

launch of the aesthetic device Préime DermaFacial continuously enriching its product portfolio to

provide customers with exceptional experiences and services. Sinclair has completed its dual-

channel business development strategy covering both public hospitals and private medical

aesthetics institutions to meet the increasingly diverse needs of customers for professional high-

end and customized aesthetic solutions.Committed to the principle of "medical professionalism first" in its aesthetic medicine business

Sinclair organized over 180 offline medical training and education events in the first half of 2025

training more than 3000 doctors. Its online education platform recorded over 130000 doctor visits

with 17 academic journal papers published including 11 SCI-indexed journals (English). As of June

30 2025 Ellansé has signed cooperation contracts with over 1000 hospitals and trained over 2000

certified physicians.Against the backdrop of national policies vigorously promoting the standardized

transformation of the esthetic medicine industry the Guidelines for the Establishment of Pricing

Projects for Aesthetic and Plastic Medical Services (Trial) issued by the National Healthcare

Security Administration in June 2025 has provided clear policy guidance and pricing standards for

public hospitals to develop plastic and aesthetic services. Driven by this policy orientation Grade

24Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

III Class A hospitals across China are accelerating their deployment in the aesthetic medicine sector

aiming to fill the market gap in professional standardized aesthetic services and meet the growing

demand for high-quality aesthetic care. Facing the strategic opportunity of rapid development in the

public hospital aesthetic medicine market the pharmaceutical services team of Zhongmei Huadong

and the aesthetic medicine team of Sinclair have established a deep collaboration mechanism.Through a "dual-drive" strategy they are comprehensively deploying in the public hospital market

with targeted planning division of labor and market access for aesthetic medicine promotion in

public hospitals. The pharmaceutical services team is accelerating team formation product listing

on public procurement platforms access negotiations and personnel training. They are actively

undertaking the promotion of injectable filler products and EBD products in public hospitals

striving to build a professional promotion team specialized in public hospital aesthetic medicine.This will create a closed-loop ecosystem of "product access-clinical promotion-continuous service"

in the public hospital medical aesthetics market fostering a new growth driver for the company's

medical aesthetics business.During the reporting period the Company continued to develop and advance the overseas

registration of its aesthetic medicine products. The next-generation injectable dermal filler KIO015

is currently in the technical review stage for EU MDR-CE certification and is expected to obtain EU

CE certification by 2025. All injectable products of the Company including regenerative materials

(Ellansé Lanluma) hyaluronic acid fillers (MaiLi Perfectha) and thread lifting products

(Silhouette Soft Silhouette Instalift) have been registered and marketed in over ten markets in

the Middle East. The registration of core EBD products such as the Cooltech Elysion and

Primelase series in the Middle East market has also been actively promoted with overall progress

exceeding 50%. Ellansé S has been approved for clinical trials in the U.S. and project initiation

and injection training for investigators have been completed. Currently subject enrollment is over

50% complete. Meanwhile the Company has initiated preparatory work for the registration of

MaiLi in the U.S. and other injectable products such as KIO015 are also in active preparation for

U.S. registration and clinical trials.During the reporting period the Company continued to promote the registration and

commercialization of several core products in China. For V30 (a high-end integrated

multifunctional platform combining radio frequency intense pulsed light and Nd: YAG laser) a

supplementary information notice was received from the Center for Medical Device Evaluation in

June 2025 and the relevant technical materials are currently being prepared. For the new high-end

lidocaine-containing sodium hyaluronate filler for injection MaiLi Precise (indicated for

infraorbital hollows) database lock for its Chinese clinical trial was completed in early July 2025

25Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

and it is currently in the summary report phase. The same series MaiLi Extreme (indicated for

improvement of jawline contour) received NMPA approval for market launch in January 2025. For

Ellansé S subject enrollment for its new indication (forehead contour improvement) in China was

fully completed in November 2024 and the trial is currently in the primary endpoint follow-up

stage. Meanwhile Ellansé M—a long-acting collagen-stimulating product of the Ellansé series

(indicated for temporal hollow improvement)—received a registration acceptance notification from

the NMPA in January 2025. For the poly-L-lactic acid collagen stimulator Lanluma subject

enrollment for the Chinese clinical trial was completed in November 2024 and the trial is currently

in the follow-up phase. The new material chitosan dermal filler KIO021 is expected to enter the

clinical trial phase in September 2025. The Marketing Authorization Application for the Company's

exclusive distribution product Recombinant Botulinum Toxin Type A for Injection (R&D code:

YY001) was accepted by the NMPA in December 2024. The on-site production inspection of

NMPA was completed in June 2025 and the product is currently in the technical review stage. For

the registration progress of other key aesthetic medicine products in China please refer to the

section "Progress in registration and launching of aesthetic medicine products in China" below.

26Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Figure: Huadong Medicine's key aesthetic medicine products

4. Industrial microbiology segment

During the reporting period the Company kept implementing the industrial microbiology

development strategy and further strengthened its product R&D and market expansion capabilities

by continuously advancing four major fields of xRNA featured APIs & intermediates massive

health & biomaterials and animal health. With current strategic priorities established on

accelerating global market expansion and deeper integration into the global pharmaceutical supply

chain the Company has achieved positive progress in developing major customer partnerships

across domestic and international markets. Through years of exploration and practice the Company

has forged a challenging yet rewarding path for growth. During the reporting period all business

units maintained rapid growth demonstrating a sustained upward trend in overall sales and

achieving a total sales revenue of RMB 368 million up 29% year on year. Four major fields of

featured APIs & intermediates xRNA massive health & biomaterials and animal health witnessed

growth of 23% 37% 21% and 100% respectively. Major accomplishments across all fields are as

follows:

27Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Global market expansion remains a core mission for the industrial microbiology segment. For

the featured APIs & intermediates field that integrates traditional and innovative operations the

product portfolio for ADC toxin innovation business has now been established with all core toxin

variants having completed U.S. DMF registrations. Moreover multiple ADC small-molecule

CDMO projects have been secured offering global customers end-to-end services spanning from

early-stage R&D to clinical-phase product development and regulatory registration submissions as

well as a stable supply of toxin products for clinical and commercial stages. The polypeptide

business has completed an overall deployment and kept actively expanding into the international

market with anticipated gradual release of overseas order potential. Additionally the deployment of

high-potency API products of microbial origin (including anti-tumor anti-parasite compounds) has

been substantially completed.xRNA: Perfect mRNA has established full capabilities to undertake mRNA-related CDMO

businesses. It has successfully developed dozens of enzymatic and chemical raw materials for

mRNA vaccine synthesis and built an integrated platform that encompasses high-density

fermentation plasmid preparation mRNA drug substance production and LNP formulations

providing customers with end-to-end solutions that span R&D production and quality control and

it has already signed CDMO contracts for plasmid DNA therapeutics. Meanwhile Wuhu Huaren

has enhanced its full-chain development and production capabilities for upstream raw materials for

oligonucleotide medicines and in vitro diagnostics (IVD) delivering differentiated services and

rapid responses to serve globally renowned pharmaceutical enterprises CDMOs and IVD

companies. Through sustained investments in innovation Wuhu Huaren has endeavored to

continuously enhance its R&D capabilities in raw materials for nucleic acid medicines delivery

systems and customized business. To date with ISO 9001 certification and strict adherence to the

ICH international guidelines and GMP standards Wuhu Huaren has secured ten U.S. DMF

registrations. These capabilities have enabled its partnerships with multiple multinational

pharmaceutical enterprises thus driving robust business growth.Massive health & biomaterials: Focused on three core businesses—functional food ingredients

personal care raw materials and biomaterials Magic Health has launched six products in the first h

alf of 2025 and has maintained the effective operation of multiple food quality management systems

including ISO 9001 KOSHER GMP and FSSC 22000. In terms of customer development and exp

ansion of new application it established cooperation with leading international health supplement c

ustomers and achieved significant progress in exploring new segments of the domestic dairy industr

y. Shengji Material fostered an advanced medical-grade functional materials matrix based on its self

-developed biodegradable products. By leveraging its unique platform for preparation technologies i

28Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

nnovation it proactively developed biological medicine and aesthetic medicine CMC R&D busines

ses closely associated with its materials expertise that boast global competitiveness. This model faci

litates joint incubation of innovative products together with international partners. Currently Shengj

i Material has established collaborative relationships with leading overseas universities and domesti

c pharmaceutical enterprises in the fields of novel eco-friendly materials and complex injectables c

overing both material supply and downstream application research.Animal health: Nanjing Nongda Animal Pharmaceutical the Company’s holding subsidiary

has been actively building a professional brand system for the pet healthcare industry developing

innovative solutions across three specialized segments in animal health: perioperative care geriatric

disease management and nutritional health services. Leveraging its exclusively commercialized

central analgesic medicine for pets Butorphanol Tartrate Injection (trade name: Baoshining)

Nanjing Nongda Animal Pharmaceutical has implemented a strategy centered on expanding hospital

coverage building partnerships with KOLs at chain hospitals and establishing flagship hospitals in

major cities. As of June 2025 these efforts had secured coverage in over 7000 pet hospitals

throughout China effectively driving the promotion and sales of other specialized products while

fostering and strengthening its field professional teams for pet care. Concurrently Nanjing Nongda

Animal Pharmaceutical has vigorously strengthened its innovative pet product pipelines through

internal R&D and external partnerships fostering robust product portfolios in perioperative care

and dermatology treatments. In the first half of 2025 two products were approved with four more

under final review. Additionally Nanjing Nongda Animal Pharmaceutical has prioritized online

channel development by launching the pet e-commerce brand “Mengdi” on Tmall TikTok and

other mainstream e-commerce platforms. This initiative directly addressed the evolving consumer

needs while contributing to the entire industry's development. Strategically advancing aquatic

animal health as a high-potential sector it has been committed to improving water environments

and enhancing aquatic nutrition through team restructuring product innovation regional expansion

and direct sales model trials. These efforts enable Nanjing Nongda Animal Pharmaceutical to

provide aquaculture operators with comprehensive solutions and services including animal health

products pathogen detection services and water quality testing.

5. ESG of the Company during the reporting period

With regard to ESG the Company maintained an unwavering commitment to sustainable

development. An ESG Committee has been established under the Board of Directors to oversee

ESG-related matters. The Company integrates the core ESG principles into corporate development

strategy and daily operations management guiding and innovating business practices with a

science-based approach to social responsibility. It upholds the idea of green manufacturing actively

29Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

supports China’s “carbon neutrality and carbon peaking” goals operates in strict compliance with

laws and regulations with integrity and actively fulfills its social responsibilities. During the

reporting period the Company’s excellent ESG governance capabilities led to an upgrade of its

WIND ESG rating from A to AA. In addition the Company currently holds an MSCI ESG rating of

A and a Shenzhen Stock Exchange CSI ESG rating of AA. The Company was also recognized with

honors such as the “ESG Best Practice Award 2024” by the New Fortune and the “2025Biopharmaceutical Sustainable Value Leadership Award” by Healthcare Executive.

6. Awards during the reporting period

During the reporting period the Company’s comprehensive competitive strength efficient

operation and governance and value creation capabilities gained significant market recognition as

evidenced by a number of prestigious awards and honors. The Company was listed in Fortune

China 500 for the 16th time and was selected as one of the Top 50 Global Pharmaceutical

Companies by Pharmaceutical Executive in the United States. The Company was also recognized

as the “Best Listed Company 2024” by the New Fortune. In terms of investor relations management

it received the “Investor Relations Management Award” at the 16th Tianma Awards and was named

among the “Top 10 Zhejiang A-share Listed Companies Most Favored by Institutional Investors” by

the Securities Times.(III) R&D

1. R&D overview

During the reporting period adhering to the “Scientific Research-based and Patient-centered”

corporate philosophy the Company has deepened its expertise in the fields of endocrinology

autoimmunity and oncology. Through sustained increases in the R&D investment and expansion

of innovative drug R&D pipelines it has strengthened the innovative R&D ecosystem and

technological platforms while accelerating clinical trials with multiple significant milestone

achievements made. As of the date of the Report the Company's innovative drug R&D center is

advancing over 80 innovative drug pipelines. During the reporting period the Company's R&D

investment in the pharmaceutical industry (excluding equity investment) reached RMB 1.484

billion a year-on-year increase of 33.75% of which direct R&D expenditure was RMB 1.174

billion a year-on-year increase of 54.21% accounting for 15.97% of pharmaceutical industry

revenue.

30Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Figure: Pipeline diagram of main innovative products as of the date of the report

31Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

2. Significant R&D progress

Oncology

In March 2025 the supplemental application to convert the conditional approval of

Mirvetuximab Soravtansine Injection (Elahere R&D code: IMGN853 HDM2002) to regular

approval was accepted.The NDA for the Company's class 1 new drug Mefatinib Tablets as a first-line treatment for

locally advanced or metastatic non-small cell lung cancer (NSCLC) patients with EGFR exon 21

L858R substitution mutation completed the submission of supplementary materials in June 2025

and is currently under review.The Company's self-developed differentiated innovative ADC drug pipeline targeting novel

targets has established a gradient layout. Current key advancing projects include HDM2005

HDM2020 HDM2012 HDM2017 and HDM2024. Among them HDM2005 an ADC targeting

ROR1 received NMPA approval in April 2025 for its IND application in combination with

rituximab cyclophosphamide doxorubicin (or epirubicin) and prednisone (R-CHP) in the

treatment of previously untreated diffuse large B-cell lymphoma (DLBCL). In February 2025

HDM2005 was granted Orphan Drug Designation by the U.S. FDA for mantle cell lymphoma

(MCL). HDM2005 is positioned at the forefront of global clinical development for ROR1 ADCs

and is currently conducting three clinical trials in China: a Phase I trial evaluating HDM2005

monotherapy for advanced hematologic malignancies (MCL DLBCL classical Hodgkin lymphoma

cHL) which has completed four dose-escalation cohorts is undergoing the fifth and has

simultaneously entered the expansion phase for two dose levels; a Phase I trial evaluating

HDM2005 monotherapy for advanced solid tumors with the first subject dosed in May 2025 and

dose escalation ongoing; and a Phase Ib/II trial evaluating HDM2005 combination therapy for

DLBCL patients which has been initiated by the lead site.Additionally the FGFR2b-targeting HDM2020 and MUC17-targeting HDM2012 have

achieved breakthrough progress with IND approvals obtained in both China and the United States.In August 2025 the Phase I trial of HDM2012 for advanced solid tumors dosed its first subject

making it the world’s first MUC17 ADC to enter clinical development. In the same month the

Phase I trial of HDM2020 for advanced solid tumors also successfully dosed its first subject. The

IND application for HDM2017 was submitted in China in July 2025 and HDM2024 is progressing

through preclinical development with an IND application planned for the fourth quarter of 2025.The IND application for the small-molecule anti-tumor drug HPK-1 PROTAC (hematopoietic

progenitor kinase 1 proteolysis targeting chimera) HDM2006 tablets was approved by the FDA in

January 2025 with an indication for advanced malignant tumors. Additionally HDM2006 tablets

32Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

are currently undergoing Phase I clinical studies in China for advanced solid tumors.For DR30206 a proprietary PD-L1/VEGF/TGF-β tri-specific antibody fusion protein wholly

owned and developed by the Company’s subsidiary Doer Biologics is currently leading global

R&D progress for the same target. In April 2025 the Phase Ib clinical trial of DR30206 for first-

line treatment of NSCLC successfully dosed its first subject. Furthermore the clinical trial

application for DR30206 in combination with standard chemotherapy for patients with advanced or

metastatic gastrointestinal tumors was approved in April 2025 and enrollment has now commenced

for the Phase Ib/IIa study of this combination therapy.The Company’s exclusively commercialized autologous CD19-targeted CAR-T candidate

IM19 is under development in mainland China. In August 2025 it received a supplementary

information notice and the Company is currently preparing the required technical documentation.The marketing authorization application is expected to be approved in Q1 2026 or earlier.Endocrinology

The oral small-molecule GLP-1 receptor agonist HDM1002 (conveglipron) has now

completed enrollment of all subjects for its Phase III clinical trial in China for the weight

management indication. Previously released Phase II trial results for the weight management

indication demonstrated that HDM1002 tablets effectively reduced body weight and improved

metabolic parameters with good safety and tolerability. After 12 weeks of administration the

percentage changes in body weight from baseline were -6.08% and -6.83% for the 200 mg BID and

400 mg QD groups respectively. Sensitivity analysis showed percentage changes of -7.01% and -

8.46% respectively consistent with the primary analysis results and without evidence of a plateau

effect. Additionally the Phase III clinical trial for treatment-naive patients with type 2 diabetes has

enrolled its first subject while another Phase III trial for a separate diabetes indication has received

approval from the CDE to proceed.The HDM1005 (poterepatide) injection a GLP-1R/GIPR long-acting polypeptide dual-target

agonist is currently undergoing a Phase II clinical trial for the weight management indication with

full subject enrollment completed in April 2025. It is expected to advance to Phase III clinical trial

in Q4 2025. Additionally the Phase II clinical trial for the diabetes indication completed enrollment

of all subjects in July 2025. During the reporting period the IND applications for new indications

of HDM1005 Injection were successively approved by the NMPA for the treatment of obstructive

sleep apnea (OSA) in adult patients with obesity or overweight and heart failure with preserved

ejection fraction (HFpEF) in adult patients with obesity or overweight.DR10624 Injection a FGF21R/GCGR/GLP-1R tri-specific agonist being developed by the

Company’s holding subsidiary Doer Biologics has successfully completed a Phase II clinical trial

33Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

for severe hypertriglyceridemia with positive top-line results after unblinding. Previously the

results of a Phase Ib/IIa clinical trial of DR10624 for obesity with hypertriglyceridemia presented

by Doer Biologics at the EASL Congress 2025 showed a reduction in liver fat by up to 89%.Furthermore a Phase II clinical trial for metabolic dysfunction-associated steatotic liver disease

with a high risk of liver fibrosis and metabolic combined alcohol-associated steatotic liver disease

completed the first subject enrollment in April 2025.The IND application for HDM1010 tablets (a fixed-dose oral combination formulation of

HDM1002) for the treatment of type 2 diabetes was approved by the U.S. FDA in June 2025 and

clinical trial preparations are currently underway.The NDA for Semaglutide Injection for the diabetes indication was submitted and accepted in

March 2025. For the weight management indication all subjects in the Phase III clinical trial were

enrolled in February 2025 with top-line results expected in Q4 2025.The NDA for Insulin Degludec Injection was submitted and accepted in February 2025; the

on-site inspection has been completed and the application is currently under technical review.Insulin Degludec and Insulin Aspart Injection has completed enrollment of all subjects in its

Phase III clinical trial in December 2024 with top-line results anticipated in September 2025.Autoimmunity

The supplemental application of HDM3001 (QX001S) a biosimilar of Ustekinumab

developed in collaboration between the Company and Qyuns Therapeutics for the new pediatric

plaque psoriasis indication was approved in March 2025. Additionally the marketing authorization

application and supplemental application for Crohn's disease were accepted for review in February

2025.

The innovative drug HDM3016 (QX005N) developed in collaboration between the Company

and Qyuns Therapeutics is currently undergoing Phase III clinical trials in China for two

indications: prurigo nodularis and atopic dermatitis. Enrollment for the Phase III study in prurigo

nodularis was completed in March 2025 with top-line results expected in Q4 2025. Enrollment for

the Phase III study in atopic dermatitis will be completed soon.HDM3014 (Roflumilast Cream) developed in collaboration between the Company and Arcutis

has achieved positive top-line results in Phase III clinical trials in China for both plaque psoriasis

and atopic dermatitis. The NDA submissions for both indications are planned for Q4 2025.Ruxolitinib Gel (HDM3010) independently developed by the Company has completed

enrollment in its Phase I/II clinical trial for prurigo nodularis. In addition a Phase III clinical trial in

vitiligo is currently ongoing.The MC2-01 Cream developed in collaboration between the Company and MC2 Therapeutics

34Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

received approval in July 2025 to initiate a Phase III clinical trial in China for plaque psoriasis.The Company’s first-in-class bispecific antibody candidate HDM3018 injection is under IND-

enabling development with IND filings in both China and the U.S. expected by Q3 2026. The

planned indications include inflammatory bowel disease (IBD) plaque psoriasis (PsO) and

psoriatic arthritis (PsA).The Company’s first-in-class bispecific antibody candidate HDM4002 injection is also under

IND-enabling development with IND applications in China and the U.S. targeted by Q3 2026. The

planned indication is IgA nephropathy.Other segments

The Transdermal Glomerular Filtration Rate System a Class III innovative medical device

was approved by the NMPA in February 2025. The marketing authorization application for

Relmapirazin Injection (MB-102) used cooperatively with the device was accepted by the NMPA in

January 2024 with approval expected in Q4 2025. Additionally in January 2025 MediBeacon

TGFR (including the Transdermal Glomerular Filtration Rate System and Relmapirazin Injection)

was approved by the U.S. FDA.The NDA for Ranibizumab Injection was submitted and accepted in May 2025.

3. Other tasks regarding innovation R&D

Building innovation ecosystems and unlocking source-driven impetus for innovation

Centered on the dual strategies of innovation transformation and internationalization the

Company's new innovative drug R&D mechanism has demonstrated huge potential in independent

R&D. Focusing on the fields of endocrinology autoimmunity and oncology the Company

continued to accelerate its differentiated innovation by identifying pilot frontier targets through

target discovery platform in combination with AI-driven drug design (AIDD). Since 2023 the

Company has launched over 20 early exploratory and prospective projects and has successively

incubated the first-in-class (FIC) or best-in-class (BIC) innovative drugs of the same type.Facilitating innovation and transformation advancing clinical development

Guided by the core philosophy of "Efficiency First Quality Foremost" the clinical R&D team

has established a full-cycle innovation system encompassing clinical study design operational

management biostatistical analysis regulatory registration and pharmacovigilance. This system is

designed to overcome bottlenecks in differentiated innovation and drive diversified breakthroughs

in clinical development. To date the R&D team has led and supported over 40 clinical projects

from multiple dimensions including clinical study operations biometrics regulatory affairs and

pharmacovigilance.Applying AI technologies in medicine R&D

35Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

To address core challenges of high costs lengthy timelines and low success rates in new drug

R&D the Company has established an AI-driven drug design platform integrating multiple cutting-

edge technologies. This platform combines key modules such as target protein and drug molecule

structure prediction high-throughput virtual screening AI-driven molecular generation molecular

docking deep learning-based binding affinity prediction free energy perturbation (FEP)

calculations ADMET property evaluation and pharmacokinetic modeling. Its core innovation lies

in the deep integration and dynamic feedback mechanisms across functional modules which when

coupled with the continuous iterative optimization of experimental data form a “dry-wet lab”

closed-loop system. This framework significantly enhances prediction accuracy and druggability

assessment efficiency.Currently the platform is continuously extending into all stages of drug R&D covering target

discovery lead compound screening preclinical evaluation and clinical development. Building on

open-source tools such as Boltz-2 and ProteinMPNN the AIDD team focuses on the intelligent

design and sequence optimization of macromolecular drugs including antibodies protein

therapeutics and antibody-drug conjugates (ADCs) while also exploring novel multimodal data-

driven approaches for structure prediction and conformational sampling. The team also plans to

collaborate with universities and research institutions to jointly establish an AI-driven target

discovery system. At the preclinical and clinical stages multiple applications of large language

models (LLMs) have already been implemented significantly enhancing R&D operational

efficiency and data processing quality. The Company is accelerating the establishment of an end-to-

end AI-driven innovative drug R&D system spanning target identification drug design preclinical

evaluation and clinical development thereby enabling a more efficient intelligent and lower-risk

model for pharmaceutical innovation.Postdoctoral research workstation

In February 2021 Zhongmei Huadong a wholly-owned subsidiary of the Company was

approved to set up a postdoctoral research workstation in Zhejiang which was registered as a

national postdoctoral research workstation in September 2022. To date the workstation has

recruited a total of 23 postdoctoral researchers. Among them 14 are currently active and 9 have

completed their programs. Under joint cultivation projects with postdoctoral programs at Zhejiang

University Shanghai Institute of Materia Medica of Chinese Academy of Sciences Zhejiang

University of Technology and other institutions postdocs at the Company’s postdoctoral research

workstation are devoted to frontier and translational studies on R&D of innovative drugs in

combination with the Company’s development strategies and product pipelines.Other innovative achievements

36Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

1) Patent applications

The Company’s global R&D center for innovative drugs places high importance on the

protection of intellectual property rights focusing on the management of intellectual property

throughout the drug lifecycle and the formulation of patent strategies to enhance the comprehensive

competitiveness of its products. The center has filed over 120 patent applications across various

innovation domains over the past five years since its inception with 15 patents granted to date.Since early 2025 the center has secured 5 patents granted domestically and internationally filed 19

PCT applications entering national phases and submitted numerous priority applications covering

new technology areas. Among them multiple key international patents are now under protection in

over fifty countries and regions.

2) Academic publications

From 2025 to date the Company’s innovation teams have successively published 12 papers in

journals and/or at conferences in oncology endocrinology/metabolism and autoimmunity segments.Specifically: the Phase I clinical results of the GLP-1/GIP dual-target long-acting agonist

HDM1005 selected for oral presentation at 2025 ADA; the Phase III results of semaglutide and the

Phase Ib results of HDM1002 accepted as the POSTER at 2025 ADA; preclinical results of

HDM2006 HDM2022 HDM2012 HDM2017 and HDM2020 selected for POSTER sharing at

2025 AACR; ADC pipeline studies (including HDM2020 HDM2012 and HDM2017) featured in

both oral and POSTER sessions at 2025 World ADC Asia; the preclinical results of pan-KRAS

antitumor degrader HDM2025 accepted as the POSTER of 2025 ASCO; and nonclinical and

clinical results of DR10624 a first-in-class Fc-fusion protein drug with triple agonist activity

targeting GLP-1 GCG and FGFRIc/KlothoB (FGF21R) receptors developed by the Company’s

wholly-owned subsidiary Doer Biologics presented as the POSTER of 2025 EASL with the

clinical data further recognized as a Late-Breaker.The Company has successively garnered recognition within the global academic community

for its independent R&D achievements. Since 2022 a total of 37 groundbreaking innovative

research achievements have been published in authoritative journals and/or at academic conferences

vividly validating the sustained enhancement of its independent innovation capabilities and marking

a systemic breakthrough in its innovation-driven transformation strategy.

3) Government subsidies

To date the Company’s global R&D center for innovative drugs has obtained approvals from

the government for 21 projects with the certified subsidies of nearly RMB 70 million. In 2024 the

Company was recognized as a “Pioneering Innovative Youth Team in Hangzhou”. The preclinicalstudy of HDM1002 received funding under the “High-Quality Development Special Program in the

37Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.Bio-pharmaceutical Industry in Hangzhou” while HDM4002 was supported by the "Zhongmei

Huadong National Enterprise Technology Center Capacity Building" in 2025. Additionally theCompany was approved to establish the “Zhejiang Provincial Key Laboratory for IntelligentInnovation of New Medicines for Metabolic Diseases” in 2024 with the provincial key laboratory

commencing full operation in 2025.

4. R&D progress of major generic drugs

The Company further clarified the focused and prioritized varieties by regularly organizing

dynamic evaluation and analysis of existing generic drugs under development. As of the date of the

Report the Company's Sirolimus Gel Mycophenolate Mofetil for Suspension Ibrutinib Capsules

and Vonoprazan Fumarate Tablets were approved for marketing.

5. Progress in international registration

The Company has actively pursued international registration efforts. As of the date of the

Report the main progress is as follows:

No. Field Item Remarks Latest progress

Approved KDMF in South Korea on

1 Endocrinology Acarbose APIs February 21 2025Submitted data for EP monograph revision in

July 2025

2 Endocrinology Semaglutide 1.34mg/ml3mL Submitted Type C meeting request to the USInjection FDA in May 2025

3 Endocrinology Semaglutide APIs Submitted DMF amendment to the US FDA(Injection) in July 2025

4 Endocrinology Liraglutide APIs Submitted UAE registration application inMarch 2025

5 Endocrinology Semaglutide (Oral) APIs Completed initial US DMF submission inJanuary 2025

Obtained Japanese MF approval in February

2025

6 Immunology Cyclosporine APIs Obtained Japanese GMP certification inFebruary 2025

Completed FDA on-site inspection in April

2025

7 Immunology TacrolimusCapsules 0.5 mg/1/mg/5 mg Submitted ANDA amendment in April 2025

Submitted DMF amendment to the US FDA

8 Immunology Tacrolimus APIs in March 2025Completed FDA on-site inspection in April

2025

9 Anti-infection CaspofunginAcetate for Injection 50 mg 70 mg Approved in July 2025

10 Anti-infection Mupirocin APIs Submitted DMF amendment to the US FDAin March 2025

11 Anti-infection Mupirocin Calcium APIs Submitted DMF amendment to the US FDAin March 2025

Submitted DMF amendment to the US FDA

12 Anti-infection Polymyxin B APIs in February 2025Sulfate Completed CEP (Sister file) response in April

and May 2025

38Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

13 Oncology MMAE Intermediate Submitted DMF amendment to the US FDAin March 2025

14 Oncology PyVAExd Intermediate Completed pre-IND submission in May 2025

15 Oncology DM1 Intermediate Submitted DMF amendment to the US FDAin July 2025

4-

16 Oncology ([124]Triazolo[15-A]pyridin-7-yloxy)- Intermediate Completed initial US DMF in April 2025

3-methylaniline

17 Antibiotics Daptomycin APIs Submitted DMF amendment to the US FDAin April 2025

Submitted ANDA amendment in March 2025

18 Digestive

Pantoprazole

Sodium for 40mg Submitted labeling changes and IR responsessystem drugs Injection in March and April 2025 with approval inMay

19 Nucleotide 2'-F-dG(ibu)drugs Phosphoramidite Intermediate Completed initial US DMF in January 2025

20 Nucleotidedrugs rU Phosphoramidite Intermediate Completed initial US DMF in January 2025

6. Progress in consistency evaluation

As of the date of the Report the Company's subsidiary Shaanxi Jiuzhou Pharmaceutical Co.Ltd. received the approval notice for the supplemental application of the consistency evaluation for

Paracetamol and Dihydrocodeine Tartrate Tablets.

7. Progress in registration and launching of aesthetic medicine products in China

No. Type Product designation Intended use Latest progress

Lidocaine-containing

Cross-linked Sodium Obtained NMPA approval in

1 Injections Hyaluronate Gel for Enhancement of Injection jawline contour January 2025; held a MaiLi launch

MaiLi Extreme (trade in May 20

name: MaiLi ShuoYing)

Locked clinical trial database in July

2 Injections MaiLi Precise Improvement of theHyaluronic acid infraorbital hollow 2025; currently summarizing thestudy report

LanlumaV Improvement of Completed enrollment of all subjects3 Injections Poly-L-lactic acid jawline contour in November 2024; follow-upassessments in progress

4 Injections KIO021 Improvement of facial Preparation of preclinical trialChitosan skin condition activities in progress

Completed enrollment of all subjects

5 Injections Ellansé-S Improvement of frontal for the new indication clinical trial inPolycaprolactone contour November 2024; follow-up of

primary endpoints in progress

Received NMPA registration

Ellansé-M Improvement of acceptance notice in January 2025;6 Injections Polycaprolactone temporal hollow obtained supplementary notice inJune; preparation of technical

documentation in progress

Submitted BLA in December 2024;

7 Botulinum

YY001

toxin Recombinant botulinum

Improvement of frown completed on-site factory

toxin type A lines verification in June 2025 technicalreview in progress

39Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Improvement of body

and facial wrinkles

Energy- benign skin lesions

Received NMPA registration

benign vascular acceptance notice in March 2025;8 based V30 received supplementary information

device lesions benignpigmented lesions notice in June 2025; preparation of

inflammatory acne technical documentation in progress

depilation etc.

8. Patent progress

In recent years the Company has placed great emphasis on the protection of intellectual

property rights and the application of research outcomes with both the number of patent

applications and grants steadily increasing. The Company has filed a total of over 1700 patent

applications domestically and internationally over the years including more than 550 authorized

invention patents. Its wholly-owned subsidiary Hangzhou Zhongmei Huadong Pharmaceutical Co.Ltd. is a national intellectual property demonstration enterprise. In November 2014 it passed the

external audit by Zhongzhi (Beijing) Certification Co. Ltd. becoming one of the first 147

companies that passed the standards implementation certification and successfully passed the

supervision and examination of the enterprise intellectual property management system in October

2024.

During the reporting period the Company’s patent applications and renewals progressed

smoothly. A total of 169 patent applications were submitted including 142 for inventions.Additionally 33 patents were granted.Increase during the reporting period Total quantity

Patent type Number of patents Number of patents Number of patents Number of patents

applied for (units) received (units) applied for (units) received (units)

Invention patent 142 16 1421 553

Utility patent 24 15 317 261

Appearance design

patent 3 2 46 44

Total 169 33 1784 858

Note: The data in the above table represent the statistical patent information of the main subsidiaries engaged in

the pharmaceutical industry industrial microbiology and aesthetic medicine within the Company’s consolidated

statements.II. Analysis of core competitiveness

1. Open innovative drug R&D system and continuously improved innovation ability

The Company places a strong emphasis on innovative R&D adhering to the philosophy of

being “Scientific Research-based and Patient-centered” and taking “clinical valuepharmacoeconomic value and commercial value” as guiding principles. It maintains a consistently

40Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

high level of R&D investment. The Company has established a global new drug R&D center

responsible for formulating strategies for independent innovative products managing pipeline

layouts and overseeing clinical research and development. Over the years of development the

Company has built a relatively complete independent drug R&D system covering the entire process

from drug discovery pharmaceutical research preclinical studies and clinical research to

industrialization.Focusing on the three core therapeutic fields of oncology endocrinology and autoimmunity

the Company keeps developing and has fostered differentiated innovative product pipelines that

cover the full R&D cycle via independent R&D external cooperation license-in etc. All these

merits effectively empower the continuous initiation and launching of innovative products offering

impetuses for the medium- and long-term development. The Company has continuously leveled up

its independent R&D and innovation capabilities with its innovative drug pipelines now covering

over 80 items positioning it within the top tier of the pharmaceutical industry in China.

2. Diverse product pipelines for specialized and chronic diseases and featured layout in

three core therapeutic fields

Focusing on specialized medicines medicines for chronic diseases as well as special

medicines for years the Company has fostered good brand effect and laid a strong market

foundation in such fields as chronic nephrosis autoimmunity endocrinology oncology digestive

system and cardiovascular diseases continuously keeping in the forefront of similar products in

China in terms of market share. Meanwhile the Company has successfully launched first-in-class

drugs in three core therapeutic fields—oncology endocrinology and autoimmunity—and has

developed three featured product matrices: ADC GLP-1 and external preparations forming

differentiated competitive advantages.With over two decades of focus on diabetes therapeutics the Company has comprehensively

laid out product pipelines of innovative and differentiated generic drugs for clinical mainstream

therapeutic targets of diabetes with over 20 types of products under development or in commercial

production. Now the Company has fostered a good brand effect and laid a strong market foundation.The existing and subsequently-upgraded products cover multiple mainstream targets including α-

glucosidase inhibitors DPP-4 inhibitors SGLT-2 inhibitors GLP-1 receptor single-target and long-

acting multi-target agonists as well as insulin and its analogs. Centered on the GLP-1 target the

Company has developed a comprehensive and differentiated product pipeline that combines long-

acting and multi-target global innovative drugs and biosimilars including oral tablets and injections.

41Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

In the field of oncology the Company focused on cutting-edge therapies such as ADCs and

CAR-T continuously strengthening its product pipeline. Additionally the Company has invested in

held controlling stakes in and incubated several domestic biotech companies with leading

technologies and has established product and equity collaborations with Heidelberg Pharma in

Germany (as its second largest shareholder). Through the introduction of Heidelberg’s proprietary

ATAC (antibody–amanitin conjugates) technology platform the Company has built a unique ADC

42Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

global R&D ecosystem and is actively developing a world-class ADC innovation platform with in-

house capabilities. These efforts are dedicated to advancing differentiated ADC drugs and

delivering better more advanced treatment options for cancer patients.In the field of autoimmunity the Company's marketed and pipeline products cover a wide

range of indications including transplant immunology psoriasis atopic dermatitis rheumatoid

arthritis seborrheic dermatitis prurigo nodularis vitiligo recurrent pericarditis and cryopyrin-

associated periodic syndromes. These indications span dermatology rheumatology cardiovascular

respiratory and transplant-related diseases making the Company one of the most comprehensive

pharmaceutical enterprises in China in terms of coverage in the autoimmune disease area. To date

the Company has over 20 biologic and small-molecule innovative products in the field of

autoimmunity. Additionally the Company's innovative drug R&D center has been focusing on new

targets and biological mechanisms developing multiple early-stage projects for immune diseases

43Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

all of which are progressing smoothly. With regard to autoimmunity the Company stretched its

coverage to external preparations built external preparation R&D platforms and steadily advanced

the R&D and innovation of external and complicated preparations. Currently the Company's

wholly-owned subsidiary Huadong Medicine (Xi'an) Bodyguard Pharmaceutical Co. Ltd. has

established three production lines for external preparations. The Company now has as many as ten

products of external preparations either under development or in commercial production.

3. China’s leading professional pharmaceutical service team and complete commercial

format

In the pharmaceutical industry segment the Company has fostered a professional

pharmaceutical service and market development team. With a focus on clinical values and academic

promotion the team advances a marketing mode that integrates comprehensive hospitals primary-

level medical institutions the retail sector the third-terminal market and online channels. Its sales

network now covers more than 30 provinces (autonomous regions and municipalities) across China

gradually achieving multi-channel and broad coverage and forming strong competitive advantages.In the pharmaceutical business the Company has long been deeply engaged in the Zhejiang

44Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

market with a mature and comprehensive business structure and a broad product portfolio

maintaining a leading edge in market access and distribution coverage. It has established strategic

partnerships with over 95% of mainstream pharmaceutical enterprises both domestically and

internationally. Its sales network covers all 91 districts and counties across Zhejiang with 100%

penetration into public hospitals. The Company also continues to expand its customer base to

include high-value retail pharmacies and private medical institutions with its market share

consistently ranking among the top in Zhejiang. In the meantime the Company has continuously

enhanced its core competencies and established significant competitive advantages in strategic

cooperation with leading hospitals policy and regulatory affairs coordination service system

innovation and efficient organizational operations. Actively embracing healthcare reform policies

and further deepening partnerships with major clients the Company has maintained industry

leadership in Zhejiang in areas such as pharmaceutical service innovation third-party cold-chain

logistics and automated herbal decoction.

4. Comprehensive high-end international aesthetic medicine product pipeline

The Company focuses on the global high-end aesthetic medicine market and has established its

wholly-owned subsidiary Sinclair in the UK as the global operating platform for its aesthetic

medicine business. Backed by an international aesthetic medicine operation and BD team the

Company has in recent years acquired energy-based device companies High Tech and Viora.Through these acquisitions it has successively introduced a number of products including the

Préime DermaFacial multifunctional facial skin management platform the KiOmed series of

chitosan-based aesthetic products and the recombinant botulinum toxin type A (YY001). These

efforts have gradually improved and enriched the Company’s high-end aesthetic medicine portfolio.Currently the company has achieved full coverage of the mid-to-high-end markets for non-surgical

aesthetic medicine injections and energy-based devices. It has built a portfolio of 40 international

high-end products under the “micro-invasive + non-invasive” categories of which 26 have already

been launched in domestic and overseas markets. Its global patented product portfolio spans

mainstream non-operative aesthetic fields including frown lines improvement facial and body

filling thread lifting skin management body shaping depilation and intimate rejuvenation. With

this the Company has formed a comprehensive product cluster ranking among the top in the

industry in terms of product number and coverage breadth while continuing to expand its

international influence. Meanwhile the Company has achieved full coverage of the three major

injectable categories—regenerative products hyaluronic acid and botulinum toxin—establishing a

multi-dimensional full-face aesthetic system that provides consumers with one-stop comprehensive

facial aesthetic solutions. The Company's aesthetic medicine marketing network spans over 80

45Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

countries and regions worldwide supported by a professional aesthetic medicine sales team of over

600 members across both domestic and international markets.

5. Outstanding and leading international competitiveness in industrial microbiology

segment

The Company has been deeply engaged in the field of industrial microbiology operating the

largest fermentation monomer plants in Zhejiang and possessing industry-leading capabilities in

microbial drug production. Its advanced R&D capacity spans all stages of microbial engineering

technologies including strain construction metabolic regulation enzymatic catalysis synthetic

modification and separation and purification. A complete manufacturing system has been

established covering project R&D pilot-scale testing commercial production engineering and

utility support. At the same time the Company has formed an R&D cluster centered on the

Industrial Microbiology of Zhongmei Huadong the HIT Institute of Synthetic Biology Huida

Biotech Perfect mRNA and Shengji Material. In addition it has built seven industrial bases located

in Hangzhou Xiangfuqiao Qiantang New Area Jiangsu Joyang Laboratories Magic Health Anhui

Meihua Wuhu Huaren and Nanjing Nongda Animal Pharmaceutical. On this basis the Company is

making every effort to advance the integrated development of “production research and marketing”

in the field of industrial microbiology.For the industrial microbiology team of the Company an innovative internationalized team

characterized by strong collaboration and high efficiency has been built. It features a composite

talent structure with seasoned industry experts at the core and a new generation of young

researchers as the backbone forming a specialized operating system that combines deep technical

expertise with vibrant innovation. In terms of R&D the Company’s Industrial Microbiology

Division has been committed to forming an efficient R&D team with high-quality talents as the core.To date 33% of its R&D personnel have obtained their master's and/or doctoral degrees. In the

industrial microbiology segment the Company has initiated over 460 R&D projects including 266

projects for xRNA raw materials 110 projects for featured APIs & intermediates 49 projects for

massive health & biomaterials and 35 projects for animal health.

6. Prudent and pragmatic operation style and stable returns to shareholders

Valuing innovation in management the Company has always endeavored to satisfy the

demands for market competition by improving the quality of its operations. As a result the

Company has achieved long-term steady development thanks to its high-quality products excellent

commercialization capability compliant yet efficient marketing services differentiated market

positioning innovative R&D layout and complete talent planning. Since it was listed the Company

has distributed dividends 24 times with a cumulative amount of RMB 8.259 billion which is 33.04

46Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

times the funds raised at the IPO (RMB 250 million). The Company provides shareholders with

steady returns on investment.III. Analysis of the main business

Overview

Please refer to the relevant contents of "I. Main business of the Company during the reporting period".Year-on-year changes in key accounting data

Unit: RMB

Current reporting Year-on-year increase

Same period last year Reason for change

period or decrease

Operating revenue 21674928965.21 20965065605.67 3.39%

Operating cost 14327396132.90 14109803647.16 1.54%

Selling expenses 3229044236.81 3274822873.39 -1.40%

Management expenses 725296086.80 714633116.91 1.49%

Financial expenses 22424175.74 23424445.20 -4.27%

Income tax expense 389834341.82 360337560.24 8.19%

Mainly attributable to

R&D investment 999673972.93 643106566.65 55.44% an increase in R&D

investment

Net cash flow from

2456848510.102275256481.447.98%

operating activities

Net cash flows from

-791757068.20-669504073.37-18.26%

investing activities

Mainly attributable to a

Net cash flow from decrease in cash

-1533431198.50-487229608.74-214.72%

financing activities received from

obtaining borrowings

Mainly attributable to a

Net increase in cash decrease in net cash

14817239.001112735457.71-98.67%

and cash equivalents from financing

activities

Significant changes in the composition or sources of the Company's profits during the reporting period

□Applicable□Not applicable

There were no significant changes in the composition or sources of the Company's profits during the reporting period.Composition of operating revenue

Unit: RMB

Current reporting period Same period last year Year-on-year

Proportion of Proportion of increase or

Amount Amount

operating revenue operating revenue decrease

Total operating

21674928965.21100%20965065605.67100%3.39%

revenue

By industries

Commerce 13970510608.22 64.45% 13588899262.22 64.82% 2.81%

Manufacturing 8603485229.15 39.69% 7857208599.38 37.48% 9.50%

47Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Incl.: industry 7316615884.76 33.76% 6697868023.87 31.95% 9.24%

Medical

1112235226.855.13%1348185919.476.43%-17.50%

aesthetics business

Incl.:

international

524344885.362.42%569905904.412.72%-7.99%

medical aesthetics

business

Medical

aesthetics business 725276218.82 3.35% 824698912.81 3.93% -12.06%

in China [Note]

Offset (inter-

-899066872.16-481042255.93

sectoral offset)

By products

By regions

Sales in China 21062550182.23 97.17% 20326872868.28 96.96% 3.62%

Overseas sales 612378782.98 2.83% 638192737.39 3.04% -4.04%

[Note] The medical aesthetics business in China includes revenue from self-operated aesthetic medicine products revenue from

aesthetic medicine products distributed by the Company's pharmaceutical commercial agency and revenue from proprietary OTC

weight-loss products.Industries products regions accounting for more than 10% of the Company's operating revenue or operating profit

□Applicable □Not applicable

Unit: RMB

Year-over-year Year-over-year

Year-over-year

increase or increase or

Operating Gross profit increase or

Operating cost decrease in decrease in

revenue margin decrease in

operating gross profit

operating cost

revenue margin

By industries

1397051060813034654212

Commerce 6.70% 2.81% 2.53% 0.25%.22.35

8603485229.2113598943.

Manufacturing 75.43% 9.50% 20.26% -2.20%

1585

By products

By regions

2106255018214102960373

Sales in China 33.04% 3.62% 1.45% 1.43%.23.65

Overseas sales 612378782.98 224435759.25 63.35% -4.04% 7.46% -3.92%

If the statistical method of the Company’s main business data has been adjusted during the reporting period the Company’s main

business data of the most recent period should be adjusted according to the method at the end of the reporting period

□Applicable □Not applicable

IV. Analysis of non-main business

□Applicable □Not applicable

Unit: RMB

Proportion to total Whether it is

Amount Reason for formation

profit sustainable

Mainly attributable to

Investment income -67265820.65 -3.07% income from long-term

equity investment

48Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

accounted for using the

equity method

Gains or losses from

0.00 0.00% No

changes in fair value

Impairment of assets 0.00 0.00%

Non-operating revenue 4157614.19 0.19% No

Non-operating

54367929.24 2.48% No

expenses

Mainly attributable to

the recognition of

Other income 144290664.93 6.58% No

government grants

during the period

V.Analysis of assets and liabilities

1. Significant changes in asset composition

Unit: RMB

End of the current reporting period End of the prior year Increase or Description of

Proportion to Proportion to decrease in significant

Amount Amount

total assets total assets proportion changes

Monetary funds 5160515681.60 13.30% 5276440245.36 13.93% -0.63%

Accounts

9130033608.5423.52%8425358862.2322.24%1.28%

receivable

Inventory 5029505978.33 12.96% 4776397278.01 12.61% 0.35%

Investment

11394409.570.03%11842042.670.03%0.00%

property

Long-term

equity 1511055130.79 3.89% 1543646404.76 4.08% -0.19%

investment

Fixed assets 4282121438.14 11.03% 4422300775.01 11.67% -0.64%

Construction in

1037144674.622.67%836739481.602.21%0.46%

progress

Right-of-use

157830603.000.41%149504562.990.39%0.02%

assets

Mainly

attributable to

Short-term

1872106049.23 4.82% 2312339143.21 6.10% -1.28% debt repayment

borrowings

during the

current period

Contract

122763179.080.32%173609109.580.46%-0.14%

liabilities

Long-term

299738501.520.77%14262841.050.04%0.73%

borrowings

Lease liabilities 85626580.16 0.22% 71857938.46 0.19% 0.03%

2. Major overseas assets

□Applicable □Not applicable

49Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Proportion

Control of overseas Any

Specific

Reason for Operating measures to Profitabilit assets to significant

item of the Asset scale Location

formation mode ensure y net assets impairment

asset

asset safety of the risk

Company

Major

decisions

approved

by the

Board of

Directors

Sinclair RMB Loss for

Equity United Independent routine

Pharma 23662.113 the current 9.81% No

acquisition Kingdom accounting financial

Limited million period

supervision

and audits

conducted

by external

intermediar

y agencies

3. Assets and liabilities measured at fair value

□Applicable □Not applicable

Unit: RMB

Profits or Impair

Cumulative

losses from ment

fair value Purchase Sale amount

changes in accrued Other Closing

Item Opening balance changes amount in the in the current

fair value in in the changes balance

recorded in current period period

the current current

equity

period period

Financial

assets

4. Investment

in other 665880883.

603232766.22-171215.68-3843136.7263864212.72-1044880.22

equity 04

instruments

Subtotal of

665880883.

financial 603232766.22 -171215.68 -3843136.72 63864212.72 -1044880.22

04

assets

Receivables 547205454 124888187

1677636420.095043299994.31

financing 2.80 1.60

Total of the 547205454 191476275

2280869186.31-171215.68-3843136.720.005107164207.03-1044880.22

above 2.80 4.64

Financial

0.000.00

liabilities

Description of other changes

Other changes are due to exchange rate changes

Whether there is any significant change in the measurement attributes of the Company's main assets during the reporting period

□Yes□No

50Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

4. Restrictions on asset rights as of the end of the reporting period

Unit: RMB

Type of

Item Closing book balance Closing carrying amount Reason for restriction

restriction

Monetary funds 104547255.92 104547255.92 Deposit Deposit used for issuing billsletters of credit etc.Large-denomination certificate

Monetary funds 50000000.00 50000000.00 Pledged of deposit pledged for issuing

bills

Monetary funds 1000000.00 1000000.00 Frozen Judicially frozen funds

Fixed assets 36203699.81 35515829.58 Mortgage Property used as collateral for aloan

Intangible assets 56297988.87 52739696.47 Mortgage Land used as collateral for a loan

Total 248048944.60 243802781.97

VI. Analysis of investment status

1. Overall situation

□Applicable □Not applicable

Investment amount in the reporting Investment in the same period of the

Percentage change

period (RMB) prior year (RMB)

1238971421.661243491577.69-0.36%

2. Significant equity investments acquired during the reporting period

□Applicable□Not applicable

3. Significant non-equity investments in progress during the reporting period

□Applicable □Not applicable

Unit: RMB

Reaso

Accum ns for

Accum

ulated failure

Invest ulated

Industr actual to

ment incom

Invest ies invest meet Disclo

amoun e Disclo

ment involv ment Expect the sure

Way of t Source Project realize sure

in ed in amoun ed planne index

Item invest during of progre d by date (if

fixed the t by earnin d (if

ment the funds ss the end applica

assets invest the end gs progre applica

reporti of the ble)

or not ment of the ss and ble)

ng reporti

project reporti expect

period ng

ng ed

period

period earnin

gs

Huado Self- Yes Pharm - 1802 Own 100.00 / / Not March CNIN

51Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

ng built aceutic 11026 29358 funds % applica 09 FO

Medici project al 9.67 6.02 ble 2017 (http://

ne manuf www.c

Biome acturin ninfo.c

dical g om.cn)

Scienc

e and

Techn

ology

Park

Project

Phase

II

Huado

ng

Medici

ne Life

Scienc CNIN

e Pharm FO

Self- 30010 41009 Not April

Industr aceutic Own 96.50 (http://

built Yes 307.1 9612. / / applica 21

ial al funds % www.c

project 4 25 ble 2021

Park R&D ninfo.c

(Xiang om.cn)

fu

south

plot)

project

Huado

ng

Medici

Pharm CNIN

ne

aceutic FO

Bio- Self- 15754 32998 Not Februa

al Own 60.00 (http://

innova built Yes 6012. 7294. / / applica ry 08

manuf funds % www.c

tion project 09 41 ble 2024

acturin ninfo.c

Intellig

g om.cn)

ence

Center

Project

187442542

Total -- -- -- 6049. 38049 -- -- / / -- -- --

562.68

4. Investment in financial assets

(1) Investment in securities

□Applicable □Not applicable

Unit: RMB

Securi Securi Securi Initial Accou Openi Profit Cumu Purch Sale Gains Closin Accou Sourc

52Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

ty ty ty invest nting ng s or lative ase amou or g nting e of

type code abbre ment measu carryi losses fair amou nt in losses carryi item funds

viatio cost remen ng from value nt in the during ng

n t amou chang chang the curren the amou

model nt es in es curren t report nt

fair record t period ing

value ed in period period

in the equity

curren

t

period

Invest

Dome

Fair ment

stic -

2020 value - - in

and 4599 3843 2827 Own

RAPT RAPT 7400. measu 1712 0.00 0.00 6033. other

overse 85.74 136.7 36.07 funds

00 remen 15.68 99 equity

as 2

t instru

stocks

ments

-

2020--

459938432827

Total 7400. -- 1712 0.00 0.00 6033. -- --

85.74136.736.07

0015.6899

2

Note: (1) Huadong Medicine Investment Holding (Hong Kong) Limited a wholly-owned subsidiary of the Company purchased

218102 Series C-2 preferred shares of RAPT Therapeutics Inc. in a total of USD 3 million in 2018. APT Therapeutics Inc. was

listed on the NASDAQ Exchange on October 30 2019 (stock code: RAPT). As of the end of the reporting period Huadong

Medicine Investment Holding (Hong Kong) Limited holds 4937 shares in RAPT accounting for approximately 0.0298% of the

total shares of RAPT Therapeutics Inc.

(2) On March 11 2024 Huadong Medicine Investment Holding (Hong Kong) Limited one of the Company’s wholly-owned

subsidiaries subscribed IPO shares of Qyuns Therapeutics Co. Ltd. at the Stock Exchange of Hong Kong Limited as cornerstone

investor with the consideration of equivalent USD 5 million from its own funds in Hong Kong dollar (excluding brokerage

commission related transaction fees and levies). For details please refer to the Announcement on Subscribing IPO Shares of

Qyuns Therapeutics Co. Ltd. in Hong Kong as Cornerstone Investor (Announcement No.: 2024-013) disclosed by the Company

on CNINFO (http://www.cninfo.com.cn). On March 20 2024 Qyuns Therapeutics was successfully listed on the main board of

the Stock Exchange of Hong Kong with the stock code of 2509.HK. As of the date of the Report the Company holds a total of

37876800 shares of Qyuns Therapeutics through its wholly-owned subsidiaries Zhongmei Huadong and Huadong Medicine

Investment Holding (Hong Kong) Limited accounting for approximately 17.06% of the total shares of Qyuns Therapeutics.Among them Zhongmei Huadong holds 35900000 shares and Huadong Medicine Investment holds 1976800 shares. The

Company calculated the shares held by Zhongmei Huadong and Huadong Medicine Investment in a consolidated manner which

was reflected in the long-term equity investment in the financial statements.

(3) On November 28 2024 Hangzhou Jiuyuan Genetic Biopharmaceutical Co. Ltd. one of the Company’s shareholding

enterprises was successfully listed on the main board of the Stock Exchange of Hong Kong with the stock name (abbreviation) of

Jiuyuan Gene and the stock code of 2566.HK. As of the date of the Report the Company holds a total of 42120453 shares of

Jiuyuan Gene through its wholly-owned subsidiary Zhongmei Huadong accounting for approximately 17.16% of the total shares

of Jiuyuan Gene. The Company’s shareholding in Jiuyuan Gene was reflected in the long-term equity investment in the financial

statements.

(2) Investment in derivatives

□Applicable□Not applicable

The Company had no derivative investment during the reporting period.

5. Use of raised funds

□Applicable□Not applicable

The Company had no use of raised funds during the reporting period.

53Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

VII. Sale of major assets and equity

1. Sale of major assets

□Applicable□Not applicable

The Company did not sell major assets during the reporting period.

2. Sale of significant equity

□Applicable□Not applicable

VIII. Analysis of major shareholding companies

□Applicable □Not applicable

Major subsidiaries and shareholding companies with an impact of more than 10% on the Company's net profit

Unit: RMB

Company Type of Main Registered Operating Operating

Total assets Net assets Net profit

name company business capital revenue profit

Production of

Traditional

Hangzhou

Chinese and

Zhongmei

Western APIs 20828414693. 12249860523. 7353652655.7 1891212155.4 1613285408.3

Huadong Subsidiary 872308130

and 32 20 2 5 5

Pharmaceutical

formulations

Co. Ltd.and health care

products

Acquisition and disposal of subsidiaries during the reporting period

□Applicable □Not applicable

Method of acquisition and disposal of Impact on overall production operation

Company name

subsidiaries during the reporting period and performance

Huadong Pharmaceutical Sales

Incorporation Pharmaceutical business development

(Zhejiang) Co. Ltd.Huadong Medicine International Trade

Incorporation Pharmaceutical business development

(Zhejiang) Co. Ltd.Huadong Peiyuantang (Hangzhou)

Incorporation Pharmaceutical business development

Comprehensive Clinic Co. Ltd.Wenzhou Huiren Health Food Co. Ltd. Incorporation Pharmaceutical business development

Description of major shareholding companies

IX. Structured entities controlled by the Company

□Applicable□Not applicable

X. Risks faced by the Company and countermeasures

1. Risks from industry policy changes and product price reductions

The pharmaceutical industry is a strategic sector strongly supported and promoted in China as

54Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

it is closely related to public health and life safety. It is also a highly competitive and innovation-

driven industry that must continuously adapt to market changes and policy adjustments. In recent

years with the ongoing advancement of policies such as volume-based procurement and medical

insurance negotiations the industry has been moving toward greater standardization normalization

and systematization. In the meantime external factors such as geopolitics and macroeconomic

policies have intensified the volatility of corporate operations and market conditions posing

challenges to the production costs and profitability of the pharmaceutical industry. In addition new

drugs face the risk of price reductions.Countermeasures: The Company has always paid great attention to national policies and

industrial development with corresponding adjustments made when necessary. In terms of R&D

the Company is increasing investment to further enrich its product pipeline in core therapeutic areas

thereby enhancing competitiveness and growth potential. At the same time the Company is actively

expanding into the aesthetic medicine and industrial microbiology sectors to foster new growth

drivers. In addition the Company is committed to strengthening its resilience through cost

reduction efficiency improvement and lean management.

2. Risks in new drug R&D

In recent years the Company has actively enriched its innovative drug pipeline and accelerated

its presence in core therapeutic areas through independent R&D and licensed introductions.Generally the R&D cycle of innovative drugs is lengthy. From pre-clinical research to clinical trials

regulatory registration production approval and final commercialization the process is subject to

numerous uncertainties such as national policies market dynamics and regulatory approvals. In

addition the R&D of innovative drugs requires high-caliber talent with advanced academic and

professional backgrounds and the related labor costs and upfront R&D expenditures may put

pressure on the Company’s short-term operational performance. Post-launch market promotion and

sales ramp-up also take time and may face risks such as price reductions which could result in

returns on R&D investment falling short of expectations.Countermeasures: The Company focuses on its core therapeutic fields and continuously

enhances its in-house R&D capabilities. In recent years it has enriched and optimized its product

pipelines through a combination of independent R&D and licensed introductions thereby building a

distinctive R&D ecosystem for Huadong Medicine with specialized research matrices in oncology

endocrinology and autoimmune diseases. The Company will continue to optimize its innovation

mechanisms improve its scientific evaluation and decision-making system for new drug research

and strengthen close collaborations with leading R&D institutions both in China and abroad. In the

meantime it will increase investment in attracting high-level research talent enhance the training

55Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

and incentive mechanisms for its core technical staff and develop a world-class innovation team

capable of supporting the full cycle of innovative drug R&D.

3. Risk in investment and merger

External investment is one of the key approaches for enterprise development. In recent years

to advance its strategic transformation toward innovation the Company has continuously engaged

in investments and acquisitions in innovative drugs aesthetic medicine and industrial microbiology

leading to the recognition of goodwill. If acquired companies experience performance fluctuations

in the future goodwill may be impaired which could adversely affect the Company’s performance

for the period. In addition post-investment management and business integration of target

companies place higher demands on the Company’s management capabilities.Countermeasures: The Company exercises oversight over acquired subsidiaries through

control of the Board of Directors and by appointing management and financial personnel to

participate in major decision-making and daily operations. Subsidiaries are required to comply with

the listed company’s internal control systems and to establish and implement comprehensive

management systems. The management of acquired subsidiaries maintains efficient communication

with the Company while daily operations and major decisions are strictly carried out in accordance

with relevant laws and regulations the Company’s Articles of Association management rules and

the decision-making procedures stipulated by the Board of Directors and shareholders’ meetings. In

terms of acquisition risk prevention and control the Company conducts business financial and tax

due diligence on target companies by engaging external intermediaries and regularly carries out

specialized management audits of subsidiaries. Furthermore the Company is committed to

enhancing its capabilities in operational planning management structure and financial management

while continuously strengthening resource sharing and synergy with acquired subsidiaries and

improving business integration in consolidated operations and governance. It also conducts regular

goodwill impairment tests and reinforces comprehensiveness rigor and timeliness in post-

investment management.

4. Risk in exchange rate fluctuation

The Company has always been devoted to advancing its international development. In recent

years the Company has increasingly developed international cooperation and exchanges expanded

the sales network of aesthetic medicine in the world and accelerated the development of its

industrial microbiology segment raising the proportion of foreign currency settlement business.The fluctuation in exchange rate will affect the price of the Company’s export products cause

exchange gains and losses to the Company and increase the operating costs thus affecting the

Company’s assets liabilities and income further affecting its operational ability debt repayment

56Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

ability and profitability.Countermeasures: The Company will closely monitor fluctuations in exchange rates and

promptly adjust its business strategies accordingly to mitigate adverse impacts. It will enhance

awareness of exchange rate risks and continuously improve the foreign exchange risk management

system. Meanwhile the Company will strengthen training for financial personnel to improve

professional skills and risk awareness reinforce risk mitigation practices and fully utilize financial

instruments to hedge against exchange rate risks.XI. Implementation of the market value management system and valuation enhancement

plan

Has the Company established a market value management system

□Yes □No

Has the Company disclosed a valuation enhancement plan

□Yes□No

To strengthen its market value management further standardize its market value

management practices and practically safeguard the legitimate rights and interests of the

Company its investors and other stakeholders the Company has formulated its market value

management system in compliance with relevant laws and regulations including the Company

Law of the People’s Republic of China the Securities Law of the People’s Republic of China the

Several Opinions of the State Council on Strengthening Regulation Guarding against Risks and

Promoting High-Quality Development of the Capital Market the Administrative Measures for the

Disclosure of Information of Listed Companies the No. 10 Guideline for the Supervision of Listed

Companies - Market Value Management as well as the Articles of Association and the

Company’s operational realities. The system was approved at the 32nd Meeting of the 10th Board

of Directors. Detailed information and the full text of the system are available in the relevant

announcement disclosed by the Company on CNINFO (https://www.cninfo.com) on April 18

2025.

XII. Implementation status of the Action Plan for "Dual Enhancement of Quality and

Return"

Has the Company disclosed the Action Plan for “Dual Enhancement of Quality and Return”

57Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

□Yes □No

The Company has formulated the Action Plan for "Dual Enhancement of Quality andReturn" to implement the guiding principles of “Activating the capital market and boostinginvestors’ confidence” put forward by the Political Bureau of the CPC Central Committee and of“Vigorously improving the quality and investment value of listed companies taking morepowerful and effective measures to stabilize the market and confidence” emphasized at the

executive meeting of the State Council. The Plan aims to safeguard the interests of all

shareholders continuously strengthen the Company’s core competitiveness and investment value

and achieve high-quality efficient and sustainable development. For details please refer to the

Announcement on Advancing the Implementation of the Action Plan for "Dual Enhancement of

Quality and Return" (Announcement No.: 2024-011) disclosed by the Company on CNINFO

(http://www.cninfo.com) on March 9 2024.The Company is implementing the Action Plan for "Dual Enhancement of Quality and

Return" focusing on its four major business segments—pharmaceutical industry pharmaceutical

business aesthetic medicine and industrial microbiology—to advance its innovation-driven

transformation strategy fully stimulate innovation vitality improve operational quality and

efficiency and drive sustained high-quality development.During the reporting period the Company's R&D investment in the pharmaceutical industry

(excluding equity investments) reached RMB 1.484 billion a year-on-year increase of 33.75% of

which direct R&D expenditure was RMB 1.174 billion a year-on-year increase of 54.21%

accounting for 15.97% of the pharmaceutical industry's revenue. The Company has filed a total of

over 1700 patent applications domestically and internationally over the years including more

than 550 authorized invention patents. During the reporting period the Company’s patent

applications and renewals progressed smoothly. A total of 169 patent applications were submitted

including 142 for inventions. Additionally 33 patents were granted.The Company conducted information disclosure and investor exchange activities in line with

investor needs enhanced its transparency listened to and adopted investor opinions and

suggestions continuously improved corporate governance strengthened internal control and risk

management and enhanced standardized operations. It further standardized the operations of the

“Three Meetings”—the shareholders’ meeting the Board of Directors and the Board of

58Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Supervisors—gave full play to the roles of board committees independent directors and external

professional institutions continuously improved decision-making and safeguarded the interests

of the Company and its stakeholders.The Company has firmly upheld the philosophy of delivering returns to investors and

remained committed to prudent operations. In the first half of 2025 the Company recorded total

operating revenue of RMB 21.675 billion representing a year-on-year increase of 3.39% (3.12%

growth in Q1); net profit attributable to shareholders reached RMB 1.815 billion up 7.01% year-

on-year (6.06% growth in Q1); and net profit attributable to shareholders excluding non-recurring

gains and losses amounted to RMB 1.762 billion an 8.40% increase year-on-year (7.04% growth

in Q1). The Company's overall operations maintained a stable and upward trend with quarterly

improvements laying a solid foundation for achieving the annual business targets.In May 2025 the Company implemented the profit distribution plan for 2024 with a total

cash dividend of RMB 1.017 billion. Additionally the Company will carry out the profit

distribution for the first half of 2025 with a total cash dividend of RMB 614 million. To date the

Company has distributed dividends 24 times since it was listed with a cumulative amount of

RMB 8.259 billion which is 33.04 times the funds raised at the IPO (RMB 250 million). The

Company provides shareholders with steady returns on investment.

59Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section IV Corporate Governance Environment and Society

I. Changes in directors supervisors and senior managers of the Company

□Applicable□Not applicable

There were no changes in the Company's directors supervisors or senior managers during the reporting period. For details please

refer to the 2024 Annual Report.II. Profit distribution and conversion of capital reserve into share capital during the

reporting period

□Applicable □Not applicable

Number of bonus shares issued per 10 shares (shares) 0

Dividend distribution per 10 shares (RMB) (tax inclusive) 3.50

Share capital base for distribution plan (shares) 1754021048.00

Amount of cash dividends (RMB) (tax inclusive) 613907366.80

Amount of cash dividends in other ways (e.g. share

0.00

repurchase) (RMB)

Total amount of cash dividends (including other ways) (RMB) 613907366.80

Distributable profits (RMB) 7316805930.50

Proportion of total cash dividends (including other ways) to

100%

total profit distribution

Current situation of cash dividends

For companies at a mature stage of development with significant capital expenditure plans the cash dividends payout ratio shall

account for no less than 40% in the current profit distribution.Detailed description of the profit distribution or plan for the conversion of capital reserve into share capital

The Company's 2025 Interim Profit Distribution Plan is as follows: based on a total share capital of 1754021048.00 shares

(calculated as the Company’s current total of 1754077048.00 shares minus 56000.00 restricted stocks pending repurchase and

cancellation) the Company will distribute a cash dividend of RMB 3.50 for every 10 shares (tax inclusive). No stock dividends

will be issued and no capital reserve will be converted into share capital. The total cash dividend to be distributed amounts to

RMB 613907366.80 (tax inclusive) with the remaining retained earnings carried forward for distribution in subsequent years. If

the share capital base changes before the implementation of this profit distribution plan the distribution ratio per share will be

adjusted under the principle of maintaining the total distribution amount unchanged.The Company is in the process of repurchasing and canceling 56000 restricted stocks involved in the Restricted Stock Incentive

Plan in 2022. As of the disclosure date of the Report the process has not been completed and is expected to be finalized before the

implementation of the 2025 Interim Profit Distribution Plan. For details please refer to the Company's subsequent

announcements.This profit distribution plan takes into account the Company's current operating conditions and long-term development fully takes

into account investors’ reasonable expectations and returns is aligned with the Company’s operating performance and future

growth and is in line with the Company’s development strategy.This profit distribution plan complies with the provisions and requirements of the Company Law of the People's Republic of

China the CSRC’s Notice on Further Implementation of Cash Dividends for Listed Companies the No.3 Guideline for the

Supervision of Listed Companies - Cash Dividend Distribution of Listed Companies and the Articles of Association of the

Company. Accordingly this interim dividend plan is legal compliant and reasonable.At the 2024 Annual General Meeting held on April 16 2025 the Company approved the Proposal on Authorizing the Board of

Directors to Formulate the 2025 Interim Dividend Plan authorizing the Board of Directors to formulate specific dividend plans in

accordance with the resolution of the general meeting of shareholders subject to the fulfillment of the conditions for profit

distribution. The preconditions for the 2025 interim dividend are as follows: (1) the Company achieves stable growth in net profit

attributable to shareholders of the listed company in the current period; and (2) the Company's cash flow can meet the needs of

60Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

normal operations and sustainable development. The total amount of the interim dividend shall not exceed 50% of the net profit

attributable to shareholders of the listed company for the corresponding period and shall not be less than RMB 500 million (tax

inclusive). This 2025 interim profit distribution scheme falls within the scope authorized by the 2024 Annual Shareholders'

Meeting resolution to the Board of Directors and does not require further approval by the Shareholders' Meeting.III. Implementation of the Company's equity incentive plan employee stock ownership plan

or other employee incentive measures

□Applicable □Not applicable

1. Equity incentive

(1) On August 8 2022 the Company convened the 2nd Meeting of the 10th Board of Directors

and the 2nd Meeting of the 10th Board of Supervisors which reviewed and approved the Proposal on

the Company’s Restricted Stock Incentive Plan in 2022 (Draft) and Its Abstract the Proposal on

Management Rules for the Implementation and Assessment of the Company’s Restricted Stock

Incentive Plan in 2022 the Proposal on the Management Rules of the Company’s Restricted Stock

Incentive Plan in 2022 and the Proposal on Applying to the Shareholders’Meeting for Authorizing

the Board of Directors to Handle Equity Incentive-related Matters. Independent directors provided

their independent opinions on whether this incentive plan is conducive to the Company's sustainable

development and whether it may harm the interests of the Company and all shareholders. For

specific details please refer to the relevant announcement published by the Company on CNINFO

on August 10 2022.

(2) On August 10 2022 the Company disclosed the Announcement on Independent Directors

Publicly Soliciting Proxy Voting Rights on CNINFO. Mr. Wang Ruwei an Independent Director of

the Company acting as the convener and commissioned by other independent directors publicly

solicited proxy voting rights from all shareholders of the Company for the proposals related to the

Restricted Stock Incentive Plan in 2022 to be reviewed at the 1st Extraordinary General Meeting in

2022 scheduled for August 31 2022.

(3) From August 15 to 25 2022 the Company posted on its intranet the list of the first batch of

employees receiving incentives under the Restricted Stock Incentive Plan in 2022 for a total of 10

days. As of the end of the announcement on August 25 2022 the Board of Supervisors had not

received any objections against these employees. On the same day the Board of Supervisors

convened a meeting to review and approve the Verification Opinions and Announcement Note on

the List of the First Batch of Employees Receiving the Incentive under the Company’s Restricted

Stock Incentive Plan in 2022. The Company then disclosed these Verification Opinions and

Announcement Notes along with a related announcement on CNINFO.

61Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(4) On August 31 2022 the Company convened the 1st Extraordinary General Meeting in 2022

which reviewed and approved the Proposal on the Company’s Restricted Stock Incentive Plan in

2022 (Draft) and Its Abstract the Proposal on Management Rules for the Implementation and

Assessment of the Company’s Restricted Stock Incentive Plan in 2022 the Proposal on the

Management Rules of the Company’s Restricted Stock Incentive Plan in 2022 and the Proposal on

Applying to the Shareholders’ Meeting for Authorizing the Board of Directors to Handle Equity

Incentive-related Matters. On the same day the Company disclosed the Self-Inspection Report on

Insiders and Incentive Recipients Trading of Restricted Stock Incentive Plan in 2022 and related

announcements on CNINFO. This incentive plan was approved in the Company's 1st Extraordinary

General Meeting in 2022 and the Board of Directors was authorized to implement the Company's

Restricted Stock Incentive Plan in 2022 and handle relevant matters according to the laws and

regulations.

(5) On October 27 2022 the Company convened the 4th Meeting of the 10th Board of

Directors and the 5th Meeting of the 10th Board of Supervisors. During these two meetings the

Proposal on Adjustments of the Company’s Restricted Stock Incentive Plan in 2022 and the

Proposal on Granting Restricted Stocks to the First Batch of Employees Receiving Incentive under

the Restricted Stock Incentive Plan in 2022 were reviewed and approved. The Board of Directors

confirmed that the conditions of the incentive plan for granting restricted stocks were fulfilled and

the Board of Supervisors re-verified the list of incentive recipients on the first grant date and

provided opinions on the grant. The Company’s independent directors agreed on the above

proposals with related reports prepared by the lawyers and independent financial advisers. On

October 28 2022 the Company disclosed the relevant announcement on CNINFO.

(6) On November 9 2022 the Company disclosed the Announcement on Completion of

Registration of the First Grant of Restricted Stocks under the Restricted Stock Incentive Plan in

2022. The registration of the first grant was completed and the listing date of the granted restricted

stocks was November 15 2022.

(7) On July 12 2023 the Company convened the 12th Meeting of the 10th Board of Directors

and the 8th Meeting of the 10th Board of Supervisors where the Proposal on Adjusting the Grant

Price of Reserved Stocks under the Restricted Stock Incentive Plan in 2022 and the Proposal on

Granting Reserved Restricted Stocks to Incentive Recipients under the Restricted Stock Incentive

Plan in 2022 were reviewed and approved. The Board of Directors confirmed that reserved

conditions of the incentive plan for granting restricted stocks were fulfilled and the Board of

Supervisors re-verified the list of incentive recipients on the date of granting reserved stocks and

provided opinions on the grant. The Company’s independent directors agreed on the above

62Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

proposals with related reports prepared by the lawyers and independent financial advisers. On the

same day the Company disclosed the relevant announcement on CNINFO.

(8) From July 13 to 23 2023 the Company publicly displayed the list of incentive recipients

for the reserved restricted stocks under this incentive plan through its OA system for a total of 10

days. As of the end of the announcement on July 23 2023 the Board of Supervisors did not receive

any objections against these employees. On July 26 2023 the Board of Supervisors convened a

meeting to review and approve the Verification Opinions and Announcement Note on the List of

Employees Receiving the Reserved Restricted Stock Incentive under the Company’s Restricted Stock

Incentive Plan in 2022. On the same day the Company disclosed these Verification Opinions and

Announcement Note along with a related announcement on CNINFO.

(9) On September 27 2023 the Company disclosed the Announcement on Completion of

Registration of the Reserved Grant of Restricted Stocks under the Restricted Stock Incentive Plan in

2022. The registration of the reserved grant was completed and the listing date of the granted

restricted stocks was September 28 2023.

(10) On November 21 2023 the Company convened the 18th Meeting of the 10th Board of

Directors and the 12th Meeting of the 10th Board of Supervisors during which the following

proposals were reviewed and approved: Proposal on Achievement of the Release of Restriction

Conditions during the First Restriction Period of First Grant of Restricted Stocks under the

Restricted Stock Incentive Plan in 2022 the Proposal on Adjusting the Repurchase Price of the

Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation of

Certain Restricted Stocks. The Board of Directors confirmed that the conditions for releasing

restrictions during the first restriction period of the first grant of restricted stocks under the

Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by

the Company's 1st Extraordinary General Meeting in 2022 the Board of Directors approved the

completion of the procedures for releasing the restrictions on 1220940 restricted stocks under the

first restriction period for 108 incentive recipients. The Board of Directors also approved the

repurchase and cancellation of a total of 97800 restricted stocks that had been granted but not yet

released corresponding to 4 incentive recipients who were no longer eligible due to resignation and

2 incentive recipients who failed to fully meet the individual performance assessment criteria for the

first restriction release period. The Company's independent directors issued concurring independent

opinions on the relevant matters and the Board of Supervisors provided verification opinions with

related reports prepared by the lawyers and independent financial advisers. On the same day the

Company disclosed the relevant announcement on CNINFO.

63Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(11) On December 1 2023 the Company disclosed the Hint on Circulation of Restricted

Stocks Released during the First Restriction Period of the First Grant of Restricted Stocks under the

Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first restriction

period of the first grant under the Restricted Stock Incentive Plan in 2022 became tradable on

December 5 2023.

(12) On December 8 2023 the Company convened its 2nd Extraordinary General Meeting in

2023 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the

Proposal on Altering the Registered Capital and Amending the Articles of Association were

reviewed and approved. On the same day the Company disclosed the Announcement on Repurchase

and Cancellation of Certain Restricted Stocks to Reduce Registered Capital and Notify the

Creditors. As of January 24 2024 the benchmark date for capital verification i.e. within forty-five

days from the date when the Company announced the reduction of capital no creditor requested the

Company to pay off its debts or provide corresponding guarantees.

(13) On March 28 2024 the Company disclosed the Announcement on the Completion of the

Repurchase and Cancellation of Certain Restricted Stocks. On March 26 2024 the Company

completed the procedures for repurchase and cancellation of 97800 restricted stocks in Shenzhen

Branch of China Securities Depository and Clearing Corporation Limited.

(14) On May 30 2024 the Company convened the 24th Meeting of the 10th Board of Directors

and the 16th Meeting of the 10th Board of Supervisors during which the Proposal on Adjusting the

Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase

and Cancellation of Certain Restricted Stocks were reviewed and approved. The Board of Directors

agreed to repurchase and cancel a total of 65000 restricted stocks that had been granted but not yet

released from restrictions corresponding to 5 incentive recipients who were no longer eligible due

to resignation. The Board of Supervisors provided verification opinions on the relevant matters

with related reports prepared by the lawyers and independent financial advisers. On the same day

the Company disclosed the relevant announcement on CNINFO.

(15) On June 18 2024 the Company convened its 1st Extraordinary General Meeting in 2024

where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal

on Increasing the Business Scope Altering the Registered Capital and Amending the Articles of

Association were reviewed and approved. On the same day the Company disclosed the

Announcement on Repurchase and Cancellation of Certain Restricted Stocks to Reduce Registered

Capital and Notify the Creditors. As of August 05 2024 the benchmark date for capital verification

i.e. within forty-five days from the date when the Company announced the reduction of capital no

creditor requested the Company to pay off its debts or provide corresponding guarantees.

64Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(16) On August 29 2024 the Company disclosed the Announcement on the Completion of the

Repurchase and Cancellation of Certain Restricted Stocks. On August 27 2024 the Company

completed the procedures for repurchase and cancellation of 65000 restricted stocks in Shenzhen

Branch of China Securities Depository and Clearing Corporation Limited.

(17) On October 10 2024 the Company convened the 28th Meeting of the 10th Board of

Directors and the 18th Meeting of the 10th Board of Supervisors. During these two meetings the

Proposal on Achievement of the Release of Restriction Conditions during the First Restriction

Period of Reserved Grant of Restricted Stocks under the Restricted Stock Incentive Plan in 2022

was reviewed and approved. The Board of Directors confirmed that the conditions for releasing

restrictions during the first restriction period of the reserved grant of restricted stocks under the

Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by

the Company’s 1st Extraordinary General Meeting in 2022 the Board of Directors approved the

completion of the procedures for releasing the restrictions on 192500 restricted stocks under the

first restriction period for 18 incentive recipients. The Board of Supervisors provided verification

opinions on the relevant matters with related reports prepared by the lawyers and independent

financial advisers. On the same day the Company disclosed the relevant announcement on

CNINFO.

(18) On October 24 2024 the Company disclosed the Hint on Circulation of Restricted Stocks

Released during the First Restriction Period of Reserved Grant of Restricted Stocks under the

Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first restriction

period of the reserved grant under the Restricted Stock Incentive Plan in 2022 became tradable on

October 28 2024.

(19) On November 25 2024 the Company convened the 30th Meeting of the 10th Board of

Directors and the 20th Meeting of the 10th Board of Supervisors during which the following

proposals were reviewed and approved: Proposal on Achievement of the Release of Restriction

Conditions during the Second Restriction Period of First Grant of Restricted Stocks under the

Restricted Stock Incentive Plan in 2022 the Proposal on Adjusting the Repurchase Price of the

Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation of

Certain Restricted Stocks. The Board of Directors confirmed that the conditions for releasing

restrictions during the second restriction period of the first grant of restricted stocks under the

Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by

the Company’s 1st Extraordinary General Meeting in 2022 the Board of Directors approved the

completion of the procedures for releasing the restrictions on 1063740 restricted stocks under the

second restriction period for 90 incentive recipients. The Board of Directors also approved the

65Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

repurchase and cancellation of a total of 185500 restricted stocks that had been granted but not yet

released from restrictions corresponding to 1 incentive recipient who was no longer eligible due to

resignation 16 incentive recipients whose individual performance assessment results for the second

restriction release period were unqualified and 1 reserved incentive recipient whose individual

performance assessment results for the first restriction release period were unqualified. The Board

of Supervisors provided verification opinions on the relevant matters with related reports prepared

by the lawyers and independent financial advisers. On November 27 2024 the Company disclosed

the relevant announcement on CNINFO.

(20) On December 13 2024 the Company disclosed the Hint on Circulation of Restricted

Stocks Released during the Second Restriction Period of First Grant of Restricted Stocks under the

Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second restriction

period of the first grant under the Restricted Stock Incentive Plan in 2022 became tradable on

December 16 2024.

(21) On December 20 2024 the Company convened its 2nd Extraordinary General Meeting in

2024 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the

Proposal on Increasing the Business Scope Altering the Registered Capital and Amending the

Articles of Association were reviewed and approved. On the same day the Company disclosed the

Announcement on Repurchase and Cancellation of Certain Restricted Stocks to Reduce Registered

Capital and Notify the Creditors. As of February 5 2025 the benchmark date for capital

verification i.e. within forty-five days from the date when the Company announced the reduction

of capital no creditor requested the Company to pay off its debts or provide corresponding

guarantees.

(22) On March 28 2025 the Company disclosed the Announcement on the Completion of the

Repurchase and Cancellation of Certain Restricted Stocks. On March 26 2025 the Company

completed the procedures for repurchase and cancellation of 185500 restricted stocks in Shenzhen

Branch of China Securities Depository and Clearing Corporation Limited.

(23) On June 27 2025 the Company convened the 34th Meeting of the 10th Board of Directors

and the 24th Meeting of the 10th Board of Supervisors where the Proposal on Adjusting the

Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase

and Cancellation of Certain Restricted Stocks and Reduction of the Company’s Registered Capital

were reviewed and approved. The Board of Directors agreed to repurchase and cancel a total of

56000 restricted stocks that had been granted but not yet released from restrictions corresponding

to 6 incentive recipients who were no longer eligible due to resignation and to reduce the

Company’s registered capital accordingly. The Board of Supervisors provided verification opinions

66Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

on the relevant matters with related reports prepared by the lawyers and independent financial

advisers. On July 01 2025 the Company disclosed the relevant announcement on CNINFO.

(24) On July 16 2025 the Company convened its 1st Extraordinary General Meeting in 2025

where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and Reduction of

the Company’s Registered Capital and the Proposal on Amending the Articles of Association were

reviewed and approved. On the same day the Company disclosed the Announcement on Repurchase

and Cancellation of Certain Restricted Stocks to Reduce Registered Capital and Notify the

Creditors.

2. Implementation of employee stock ownership plan (ESOP)

□Applicable□Not applicable

3. Other employee incentives

□Applicable□Not applicable

IV. Disclosure of environmental information

Whether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose

environmental information

□Yes □No

Number of enterprises included in the list of enterprises legally required to disclose

6

environmental information (unit)

Index for accessing the environmental

No. Enterprise name

information disclosure report

Enterprise Environmental Information

Disclosure System (Zhejiang):

https://mlzj.sthjt.zj.gov.cn/eps/index/ente

rprise-

morecode=91330100609120774J&uniq

ueCode=f07f08c3e871f665&date=2024

Hangzhou Zhongmei Huadong &type=true&isSearch=true

Pharmaceutical Co. Ltd. National Pollutant Discharge Permit

Management Information Platform

(Public Access):

https://permit.mee.gov.cn/perxxgkinfo/xk

gkAction!xkgk.actionxkgk=getxxgkCon

tent&dataid=a5f5b10f26bc474aa8b56eee

d6e8aaf5

Enterprise Environmental Information

Disclosure System (Zhejiang):

https://mlzj.sthjt.zj.gov.cn/eps/index/ente

rprise-

Hangzhou Zhongmei Huadong

2 morecode=913301000678586850&uniq

Pharmaceutical Jiangdong Co. Ltd.ueCode=06bcf781a9a3946f&date=2024

&type=true&isSearch=true

National Pollutant Discharge Permit

Management Information Platform

67Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(Public Access):

https://permit.mee.gov.cn/perxxgkinfo/xk

gkAction!xkgk.actionxkgk=getxxgkCon

tent&dataid=1d7a321cefe745c99140308

e0eea1fa4

Jiangsu "Environmental Profile" (One

Enterprise One File) Enterprise

Environmental Information Disclosure

Reporting:

http://ywxt.sthjt.jiangsu.gov.cn:18181/sp

sarchive-

webapp/web/viewRunner.htmlviewId=h

ttp%3A%2F%2Fywxt.sthjt.jiangsu.gov.c

n%3A18181%2Fspsarchive-

webapp%2Fweb%2Fsps%2Fviews%2Fy

fpl%2Fviews%2FyfplEntInfo%2Findex.j

3 Joyang Laboratories

s&year=2024&ticket=09ac06b6b3074be

c899dcaf1fbc9c4df&versionId=3F96B24

3074B4BB1B484CE62B5C70A64&spC

ode=3209240200002612

National Pollutant Discharge Permit

Management Information Platform

(Public Access):

https://permit.mee.gov.cn/perxxgkinfo/xk

gkAction!xkgk.actionxkgk=getxxgkCon

tent&dataid=40175a71fada4866a256047

dc4e460ed

Enterprise Environmental Information

Disclosure System (Anhui):

https://39.145.37.16:8081/zhhb/yfplpub_

html/#/searchPagekeyWord=%E7%BE

%8E%E5%8D%8E%E9%AB%98%E7

%A7%91&hy=%5B%5D

Anhui Meihua Hi-Tech Pharmaceutical

4 National Pollutant Discharge Permit

Co. Ltd.Management Information Platform

(Public Access):

https://permit.mee.gov.cn/perxxgkinfo/xk

gkAction!xkgk.actionxkgk=getxxgkCon

tent&dataid=8159494acc9847248285d17

188e6e3a6

Enterprise Environmental Information

Disclosure System (Anhui):

https://39.145.37.16:8081/zhhb/yfplpub_

html/#/searchPagekeyWord=%E8%8A

%9C%E6%B9%96%E5%8D%8E%E4%

BB%81%E7%A7%91%E6%8A%80&hy

Wuhu Huaren Science and Technology =%5B%5D

5

Co. Ltd. National Pollutant Discharge Permit

Management Information Platform

(Public Access):

https://permit.mee.gov.cn/perxxgkinfo/xk

gkAction!xkgk.actionxkgk=getxxgkCon

tent&dataid=2d3193013f4e4b438a69c39

4d54a2344

National Pollutant Discharge Permit

Huadong Medicine (Xi'an) Bodyguard Management Information Platform

6

Pharmaceutical Co. Ltd. (Public Access):

https://permit.mee.gov.cn/perxxgkinfo/xk

68Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

gkAction!xkgk.actionxkgk=getxxgkCon

tent&dataid=705a3ed5d89b462b89647fd

b73373bfa

Enterprise Environmental Information

Disclosure System (Shaanxi):

http://113.140.66.227:11077/#/noLogin/i

ndex

V. Social responsibility

In the process of its strategic transformation the Company strictly fulfills its corporate social

responsibilities addressing the needs of all stakeholders including shareholders governments and

regulatory agencies employees customers and patients suppliers communities the public as well

as partners The Company continues to deepen its efforts in public health education expanding

access to medical services for broader populations and providing affordable healthcare solutions for

patients. Meanwhile the Company remains committed to social welfare initiatives uniting diverse

forces to deliver warmth and care. By sharing cutting-edge technologies and collaborating with

leading experts and industry partners the Company drives progress in both industry development

and societal advancement.

69Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section V Important Matters

I. Commitments that have been fulfilled by the commitment-related parties such as actual

controllers shareholders related parties acquirers and the Company during the reporting

period and those that have not been fulfilled as of the end of the reporting period

□Applicable□Not applicable

During the reporting period the company did not have any commitments made by the actual controller shareholders related

parties acquirers or the Company itself that were fulfilled during the reporting period or remained overdue as of the end of the

reporting period.II. Non-operational appropriation of funds of the listed company by controlling

shareholders and other related parties

□Applicable□Not applicable

During the reporting period there was no non-operational appropriation of funds of the listed company by controlling shareholders

and other related parties

III. Violations of external guarantees

□Applicable□Not applicable

There was no violation of external guarantee during the reporting period.IV. Appointment and dismissal of accounting firms

Whether the semi-annual financial report has been audited

□Yes□No

The Company's semi-annual report has not been audited.V. Explanations by the Board of Directors and the Board of Supervisors on the “Non-standard Audit Report” during the reporting period

□Applicable□Not applicableVI. Explanation of the Board of Directors on the situation relating to the “Non-standardAudit Report” of the prior year

□Applicable□Not applicable

VII. Matters related to bankruptcy and reorganization

□Applicable□Not applicable

The Company was not involved in matters related to bankruptcy and reorganization during the reporting period.

70Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

VIII. Litigation matters

Significant litigation and arbitration matters

□Applicable□Not applicable

During the reporting period the company was not involved in major litigation or arbitration matters.Other litigation matters

□Applicable □Not applicable

Adjudication

Basic Amount Whether an Execution of

Progress of result and

information involved estimated litigation Disclosure Disclosure

litigation impact of

of litigation (RMB liability is (arbitration) date index

(arbitration) litigation

(arbitration) 10000) formed judgments

(arbitration)

Some cases

are under

trial and

some

adjudications Some cases

Summary of have come have been

matters not into force The executed

meeting the (with summary of some

thresholds adjudicated the litigation adjudicated

for disclosure 38069.55 No amount matters has cases are / /

of major reaching no significant under

litigations RMB impact on the enforcement

(arbitrations) 42532391.6 Company some cases

(China) 9 and the are not

unenforced adjudicated

balance

amounting to

RMB

17367321)

Summary of

matters not The

meeting the summary of

thresholds the litigation

All cases are All cases are

for disclosure 2539.5 No matters has / /

under trial under trial

of major no significant

litigations impact on the

(arbitrations) Company

(overseas)

Hangzhou As of the For details

Zhongmei disclosure please refer

Huadong date of the to the

Pharmaceutic Report the Announceme

al Co. Ltd. litigation has nt on the

the undergone Wholly-

Company’s two court owned

January 3

wholly- 11137.58 No hearings at None None Subsidiary

2024

owned the first Receiving the

subsidiary instance Notice of

demanded before the Case

that Qinghai Zhejiang Acceptance

Everest Provincial from

Cordyceps High Zhejiang

Sinensis Raw People’s Provincial

71Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Materials Court with Higher

Co. Ltd. no judgment People’s

(Defendant yet rendered Court

1) and in the first (Announcem

Qinghai instance. ent No.:

Everest 2024-001)

Cordyceps disclosed by

Sinensis the Company

Pharmaceutic on CNINFO

al Co. Ltd. (http://www.

(Defendant cninfo.com.c

2) n) on January

immediately 3 2024.cease all acts

of

infringement

of relevant

invention

patents of

Zhongmei

Huadong and

compensate

for damages.Note: During the reporting period the Company made positive progress in initiating administrative rulings and lawsuits against

16 infringing enterprises for violating the invention patent "Indobufen Crystal form D and Its Preparation Method" (Patent No.:

ZL202211596913.5) owned by Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd. (hereinafter referred to as "Zhongmei

Huadong") one of its wholly-owned subsidiaries. The Company also actively defended against the patent invalidation request filed

by the accused infringing enterprises. As of the disclosure date of the Report relevant progress is as follows:

1. Administrative rulings: Zhongmei Huadong has submitted administrative ruling applications to the Hangzhou Intellectual

Property Office Huzhou Intellectual Property Office Chengdu Intellectual Property Office Nanjing Intellectual Property Office and

Zunyi Intellectual Property Office regarding patent infringement by 16 companies demanding an immediate cessation of the

infringing activities. As of the disclosure date of the Report the Hangzhou Intellectual Property Office has issued 3 administrative

rulings confirming the existence of infringement and ordering the involved companies to immediately cease the infringing activities.Some of the involved companies dissatisfied with the rulings filed administrative lawsuits with the Hangzhou Intermediate People's

Court. The Court has issued an administrative judgment upholding the original ruling in one case while another case was concluded

by the appellant voluntarily withdrawing the appeal. The remaining administrative ruling applications are under trial by the

respective intellectual property offices and have not yet been adjudicated.

2. Judicial litigation: In addition to the administrative ruling applications Zhongmei Huadong has also filed a patent

infringement lawsuit with the Hangzhou Intermediate People's Court demanding an immediate cessation of the infringing activities

and compensation for damages. The case has resulted in a judgment confirming the existence of infringement and ordering the

involved company to immediately cease the infringing activities.

3. Patent invalidation proceedings: As of the disclosure date of the Report the Company has received patent invalidation

requests filed by 13 petitioners with the China National Intellectual Property Administration (CNIPA). The CNIPA issued a Case

Closure Notice for the withdrawal of invalidation requests by one petitioner on January 7 2025 rendered the Invalidation Decision

Notice maintaining the full validity of the involved patent for 5 petitioners on March 12 2025 issued Case Closure Notice for the

withdrawal of invalidation requests by one petitioner each on June 11 2025 and June 18 2025 respectively. The remaining cases are

currently under review.IX. Penalties and rectification

□Applicable□Not applicable

The Company had no penalties or rectifications during the reporting period.X. Integrity of the Company and its controlling shareholders and actual controllers

□Applicable □Not applicable

During the reporting period neither the Company its controlling shareholders nor its actual controller has failed to comply with

any effective court judgment nor defaulted on any material debt obligations that had become due.

72Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

XI. Significant related-party transactions

1. Related party transactions related to daily operations

□Applicable □Not applicable

Relate

Pricin Propo Appro Settle Availa

d Whet

Type Conte g Price rtion ved ment ble

party her it

Relate of nts of policy of of the transa metho marke

transa excee

Relate d relate relate for relate amou ction d for t price Disclo Disclo

ction ds the

d party d d relate d nt of amou relate of sure sure

amou appro

party relatio party party d party simila nt d simila date index

nt ved

nship transa transa party transa r (RMB party r

(RMB amou

ction ction transa ction transa 1000 transa transa

1000 nt

ctions ctions 0) ctions ctions

0)

Marke

t price

deter

mined

accor

ding

Subsi

Hangz to the

diary

hou Comp

of

Grand any's Cash

contro Procu Procu

Biolo decisi bank April

lling remen remen Marke 3425. Marke CNIN

gic on- 0.24% 6130 No accept 18

shareh t of t of t price 6 t price FO

Pharm makin ance 2025

older drugs drugs

aceuti g bill

of the

cal proce

Comp

Inc. dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Subsi ding

Beijin

diary to the

g

of Comp

Grand Cash

contro Procu Procu any's

Joham bank April

lling remen remen decisi Marke 2032. 1008 Marke CNIN

u 0.14% No accept 18

shareh t of t of on- t price 18 2.06 t price FO

Pharm ance 2025

older drugs drugs makin

aceuti bill

of the g

cal

Comp proce

Ltd.any dures

for

relate

d-

party

transa

73Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Lei to the

diary

Yunsh Comp

of

ang any's Cash

contro Procu Procu

Pharm decisi bank April

lling remen remen Marke 1499. 3266. Marke CNIN

aceuti on- 0.10% No accept 18

shareh t of t of t price 26 97 t price FO

cal makin ance 2025

older drugs drugs

Group g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

Grand diary

Comp

Life of

any's Cash

Scien contro Procu Procu

decisi bank April

ces lling remen remen Marke 1136. Marke CNIN

on- 0.08% 3100 No accept 18

(Shan shareh t of t of t price 8 t price FO

makin ance 2025

dong) older drugs drugs

g bill

Co. of the

proce

Ltd. Comp

dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

Grand Subsi

mined

Shuya diary

accor

ng of

ding Cash

Life contro Procu Procu

to the bank April

Scien lling remen remen Marke 1098. Marke CNIN

Comp 0.08% 2900 No accept 18

ces shareh t of t of t price 47 t price FO

any's ance 2025

(Chen older drugs drugs

decisi bill

gdu) of the

on-

Co. Comp

makin

Ltd. any

g

proce

dures

74Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Wuha Subsi

to the

n diary

Comp

Grand of

any's Cash

Pharm contro Procu Procu

decisi bank April

aceuti lling remen remen Marke 1044. 1008 Marke CNIN

on- 0.07% No accept 18

cal shareh t of t of t price 98 2.06 t price FO

makin ance 2025

Group older drugs drugs

g bill

Sales of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Grand ding

Subsi

Medic to the

diary

al Comp

of

Nutrit any's Cash

contro Procu Procu

ion decisi bank April

lling remen remen Marke 974.2 Marke CNIN

Scien on- 0.07% 2612 No accept 18

shareh t of t of t price 3 t price FO

ce makin ance 2025

older drugs drugs

(Wuh g bill

of the

an) proce

Comp

Co. dures

any

Ltd. for

relate

d-

party

transa

ctions

Yunna Subsi Marke

n diary t price

Leiyu of deter

Cash

nshan contro Procu Procu mined

bank April

g lling remen remen accor Marke 840.1 Marke CNIN

0.06% 1600 No accept 18

Pharm shareh t of t of ding t price 1 t price FO

ance 2025

aceuti older drugs drugs to the

bill

cal of the Comp

Co. Comp any's

Ltd. any decisi

75Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

Grand diary

Comp

Life of

any's Cash

Scien contro Procu Procu

decisi bank April

ce lling remen remen Marke 772.6 Marke CNIN

on- 0.05% 1269 No accept 18

(Liao shareh t of t of t price 3 t price FO

makin ance 2025

ning) older drugs drugs

g bill

Co. of the

proce

Ltd. Comp

dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

Grand diary

Comp

Pharm of

any's Cash

aceuti contro Procu Procu

decisi bank April

cal lling remen remen Marke 713.1 1008 Marke CNIN

on- 0.05% No accept 18

(Chin shareh t of t of t price 2 2.06 t price FO

makin ance 2025

a) older drugs drugs

g bill

Co. of the

proce

Ltd. Comp

dures

any

for

relate

d-

party

transa

ctions

Qingd Subsi Marke Cash

Procu Procu

ao diary t price bank April

remen remen Marke 179.1 Marke CNIN

Norse of deter 0.01% 6130 No accept 18

t of t of t price 4 t price FO

n contro mined ance 2025

drugs drugs

Biotec lling accor bill

76Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

hnolo shareh ding

gy older to the

Co. of the Comp

Ltd. Comp any's

any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Sheny ding

Subsi

ang to the

diary

Yaoda Comp

of

Leiyu any's Cash

contro Procu Procu

nshan decisi bank April

lling remen remen Marke Marke CNIN

g on- 162.3 0.01% 781 No accept 18

shareh t of t of t price t price FO

Pharm makin ance 2025

older drugs drugs

aceuti g bill

of the

cal proce

Comp

Co. dures

any

Ltd. for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

Grand diary

Comp

Pharm of

any's Cash

aceuti contro Procu Procu

decisi bank April

cal lling remen remen Marke 141.7 1008 Marke CNIN

on- 0.01% No accept 18

(Tianj shareh t of t of t price 2 2.06 t price FO

makin ance 2025

in) older drugs drugs

g bill

Co. of the

proce

Ltd. Comp

dures

any

for

relate

d-

party

transa

ctions

77Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Marke

t price

deter

mined

accor

ding

Subsi

to the

Xi'an diary

Comp

Grand of

any's Cash

Deten contro Procu Procu

decisi bank April

Pharm lling remen remen Marke 134.6 Marke CNIN

on- 0.01% 300 No accept 18

aceuti shareh t of t of t price 2 t price FO

makin ance 2025

cal older drugs drugs

g bill

Co. of the

proce

Ltd. Comp

dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Xi'an to the

diary

Grand Comp

of

Chang any's Cash

contro Procu Procu

'an decisi bank April

lling remen remen Marke 1008 Marke CNIN

Pharm on- 129.4 0.01% No accept 18

shareh t of t of t price 2.06 t price FO

aceuti makin ance 2025

older drugs drugs

cal g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

Subsi mined

Grand diary accor

Life of ding

Cash

Scien contro Procu Procu to the

bank April

ces lling remen remen Comp Marke 125.7 Marke CNIN

0.01% 781 No accept 18

(Ansh shareh t of t of any's t price 2 t price FO

ance 2025

an) older drugs drugs decisi

bill

Co. of the on-

Ltd. Comp makin

any g

proce

dures

for

78Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

to the

Chon

Assoc Comp

gqing

iate of any's Cash

Peg- Procu Procu

the decisi bank April

Bio remen remen Marke Marke CNIN

Comp on- 97.65 0.01% 140 No accept 18

Bioph t of t of t price t price FO

any's makin ance 2025

arm drugs drugs

subsid g bill

Co.iary proce

Ltd.dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Anhui to the

diary

Leiyu Comp

of

nshan any's Cash

contro Procu Procu

g decisi bank April

lling remen remen Marke 3266. Marke CNIN

Pharm on- 60.42 0.00% No accept 18

shareh t of t of t price 97 t price FO

aceuti makin ance 2025

older drugs drugs

cal g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Marke

Chang Subsi

t price

shu diary

deter

Lei of

mined Cash

Yun contro Procu Procu

accor bank April

Shang lling remen remen Marke 3266. Marke CNIN

ding 56.23 0.00% No accept 18

Pharm shareh t of t of t price 97 t price FO

to the ance 2025

aceuti older drugs drugs

Comp bill

cal of the

any's

Co. Comp

decisi

Ltd. any

on-

79Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Beijin

ding

g Subsi

to the

Yuand diary

Comp

a of

any's Cash

Chang contro Procu Procu

decisi bank April

sheng lling remen remen Marke 1008 Marke CNIN

on- 48.68 0.00% No accept 18

Pharm shareh t of t of t price 2.06 t price FO

makin ance 2025

aceuti older drugs drugs

g bill

cal of the

proce

Sales Comp

dures

Co. any

for

Ltd.relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Guan Subsi

to the

gdong diary

Comp

Leiyu of

any's Cash

nshan contro Procu Procu

decisi bank April

g lling remen remen Marke Marke CNIN

on- 48.46 0.00% 781 No accept 18

Pharm shareh t of t of t price t price FO

makin ance 2025

aceuti older drugs drugs

g bill

cal of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Hubei Subsi Marke

Cash

Grand diary Procu Procu t price

bank April

Tianti of remen remen deter Marke 1008 Marke CNIN

33.31 0.00% No accept 18

anmin contro t of t of mined t price 2.06 t price FO

ance 2025

g lling drugs drugs accor

bill

Pharm shareh ding

80Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

aceuti older to the

cal of the Comp

Co. Comp any's

Ltd. any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Chang Subsi

to the

chun diary

Comp

Lei of

any's Cash

Yun contro Procu Procu

decisi bank April

Shang lling remen remen Marke Marke CNIN

on- 31.55 0.00% 781 No accept 18

Pharm shareh t of t of t price t price FO

makin ance 2025

aceuti older drugs drugs

g bill

cal of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Hubei ding

Subsi

Bafen to the

diary

g Comp

of

Pharm any's Cash

contro Procu Procu

aceuti decisi bank April

lling remen remen Marke 1008 Marke CNIN

cals & on- 14.87 0.00% No accept 18

shareh t of t of t price 2.06 t price FO

Chem makin ance 2025

older drugs drugs

icals g bill

of the

Share proce

Comp

Co. dures

any

Ltd. for

relate

d-

party

transa

ctions

Grand Subsi Procu Procu Marke Marke 11.94 0.00% 1008 No Cash Marke April CNIN

81Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Jiu He diary remen remen t price t price 2.06 bank t price 18 FO

(Jiang of t of t of deter accept 2025

xi) contro drugs drugs mined ance

Pharm lling accor bill

aceuti shareh ding

cal older to the

Co. of the Comp

Ltd. Comp any's

any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Cangz to the

diary

hou Comp

of

Huach any's Cash

contro Procu Procu

en decisi bank April

lling remen remen Marke 1008 Marke CNIN

Biotec on- 10.8 0.00% No accept 18

shareh t of t of t price 2.06 t price FO

hnolo makin ance 2025

older drugs drugs

gy g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Huan Marke

gshi t price

Feiyu deter

n mined

Subsi

Pharm accor

diary

aceuti ding

of

cal to the Cash

contro Procu Procu

Co. Comp bank April

lling remen remen Marke 1008 Marke CNIN

Ltd. any's 5.75 0.00% No accept 18

shareh t of t of t price 2.06 t price FO

(a decisi ance 2025

older drugs drugs

subsid on- bill

of the

iary makin

Comp

of g

any

Grand proce

Pharm dures

aceuti for

cal relate

82Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Group d-

) party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

diary

Comp

Wuha of

any's Cash

n contro Procu Procu

decisi bank April

Grand lling remen remen Marke 1008 Marke CNIN

on- 5.66 0.00% No accept 18

Hoyo shareh t of t of t price 2.06 t price FO

makin ance 2025

Co. older drugs drugs

g bill

Ltd. of the

proce

Comp

dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Beijin to the

diary

g Comp

of

Huaji any's Cash

contro Procu Procu

n decisi bank April

lling remen remen Marke 1008 Marke CNIN

Pharm on- 2.84 0.00% No accept 18

shareh t of t of t price 2.06 t price FO

aceuti makin ance 2025

older drugs drugs

cal g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Marke

Lei Subsi t price

Yun diary deter

Shang of mined

Cash

Pharm contro Procu Procu accor

bank April

aceuti lling remen remen ding Marke 3266. Marke CNIN

2.53 0.00% No accept 18

cal shareh t of t of to the t price 97 t price FO

ance 2025

Group older drugs drugs Comp

bill

Sales of the any's

Co. Comp decisi

Ltd. any on-

makin

83Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Contr Contr to the

Grand diary

act act Comp

Life of

manuf manuf any's Cash

Scien contro

acturi acturi decisi bank April

ces lling Marke 1179. 2031. Marke CNIN

ng ng on- 0.08% No accept 18

(Shan shareh t price 1 44 t price FO

and and makin ance 2025

dong) older

other other g bill

Co. of the

servic servic proce

Ltd. Comp

es es dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

diary

Comp

of

Grand any's Cash

contro

Bay Confe Confe decisi bank April

lling Marke Marke CNIN

Hotel rence rence on- 7.28 0.00% 0 Yes accept 18

shareh t price t price FO

Beijin fee fee makin ance 2025

older

g g bill

of the

proce

Comp

dures

any

for

relate

d-

party

transa

ctions

Subsi Marke

Grand diary t price Cash

Bay of deter bank April

Servic Servic Marke Marke CNIN

Hotel contro mined 31.94 0.00% 0 Yes accept 18

e fee e fee t price t price FO

Beijin lling accor ance 2025

g shareh ding bill

older to the

84Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

of the Comp

Comp any's

any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

to the

Chon

Assoc Comp

gqing

iate of any's Cash

Peg-

the Inspec Inspec decisi bank April

Bio Marke Marke CNIN

Comp tion tion on- 34.91 0.00% 150 No accept 18

Bioph t price t price FO

any's fee fee makin ance 2025

arm

subsid g bill

Co.iary proce

Ltd.dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Beijin

ding

g Subsi

to the

Grand diary

Comp

Innov of

Prope Prope any's Cash

ation contro

rty rty decisi bank April

Prope lling Marke Marke CNIN

mana mana on- 33.94 0.00% 0 Yes accept 18

rty shareh t price t price FO

geme geme makin ance 2025

Mana older

nt fee nt fee g bill

geme of the

proce

nt Comp

dures

Co. any

for

Ltd.relate

d-

party

transa

ctions

Xi'an Subsi Contr Contr Marke Marke Cash Marke April CNIN

18.08 0.00% 0 Yes

Grand diary act act t price t price bank t price 18 FO

85Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Deten of manuf manuf deter accept 2025

Pharm contro acturi acturi mined ance

aceuti lling ng ng accor bill

cal shareh servic servic ding

Co. older es es to the

Ltd. of the Comp

Comp any's

any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Suzho ding

Subsi

u to the

diary

Leiyu Comp

of

nshan any's Cash

contro

g Sales Sales decisi bank April

lling Marke 145.0 Marke CNIN

Sinop of of on- 0.01% 500 No accept 18

shareh t price 9 t price FO

harm drugs drugs makin ance 2025

older

Chain g bill

of the

Store proce

Comp

Co. dures

any

Ltd. for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

Guan Subsi accor

gdong diary ding

Leiyu of to the

Cash

nshan contro Comp

Sales Sales bank April

g lling any's Marke Marke CNIN

of of 87.58 0.00% 250 No accept 18

Pharm shareh decisi t price t price FO

drugs drugs ance 2025

aceuti older on-

bill

cal of the makin

Co. Comp g

Ltd. any proce

dures

for

relate

d-

86Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Grand Subsi

to the

Thera diary

Comp

vac of

any's Cash

Life contro

Sales Sales decisi bank April

Scien lling Marke Marke CNIN

of of on- 78.05 0.00% 250 No accept 18

ce shareh t price t price FO

drugs drugs makin ance 2025

(Hang older

g bill

zhou) of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Hubei to the

diary

Grand Comp

of

Life any's Cash

contro

Scien Sales Sales decisi bank April

lling Marke 945.1 Marke CNIN

ce & of of on- 41.24 0.00% No accept 18

shareh t price 5 t price FO

Techn drugs drugs makin ance 2025

older

ology g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Marke

t price

Subsi

Lei deter

diary

Yunsh mined

of

ang accor Cash

contro

Pharm Sales Sales ding bank April

lling Marke Marke CNIN

aceuti of of to the 26.09 0.00% 500 No accept 18

shareh t price t price FO

cal drugs drugs Comp ance 2025

older

Group any's bill

of the

Co. decisi

Comp

Ltd. on-

any

makin

g

87Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Anhui to the

diary

Leiyu Comp

of

nshan any's Cash

contro

g Sales Sales decisi bank April

lling Marke Marke CNIN

Pharm of of on- 13.98 0.00% 500 No accept 18

shareh t price t price FO

aceuti drugs drugs makin ance 2025

older

cal g bill

of the

Co. proce

Comp

Ltd. dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Hangz to the

diary

hou Comp

of

Grand any's Cash

contro

Biolo Sales Sales decisi bank April

lling Marke Marke CNIN

gic of of on- 7.3 0.00% 165 No accept 18

shareh t price t price FO

Pharm drugs drugs makin ance 2025

older

aceuti g bill

of the

cal proce

Comp

Inc. dures

any

for

relate

d-

party

transa

ctions

Pingn Subsi Marke

an diary t price

Cash

Shuya of deter

Sales Sales bank April

ng contro mined Marke Marke CNIN

of of 6.19 0.00% 57 No accept 18

Plasm lling accor t price t price FO

drugs drugs ance 2025

a shareh ding

bill

Collec older to the

tion of the Comp

88Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Co. Comp any's

Ltd. any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Guipi Subsi

to the

ng diary

Comp

Shuya of

any's Cash

ng contro

Sales Sales decisi bank April

Plasm lling Marke Marke CNIN

of of on- 6.19 0.00% 57 No accept 18

a shareh t price t price FO

drugs drugs makin ance 2025

Collec older

g bill

tion of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

diary

Xi'an Comp

of

Beilin any's Cash

contro

Pharm Sales Sales decisi bank April

lling Marke 945.1 Marke CNIN

aceuti of of on- 3.94 0.00% No accept 18

shareh t price 5 t price FO

cal drugs drugs makin ance 2025

older

Co. g bill

of the

Ltd. proce

Comp

dures

any

for

relate

d-

party

transa

ctions

Kunm Subsi Sales Sales Marke Cash April

Marke Marke CNIN

ing diary of of t price 1.89 0.00% 0 Yes bank 18

t price t price FO

Shang of drugs drugs deter accept 2025

89Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

xin contro mined ance

Real lling accor bill

Estate shareh ding

Devel older to the

opme of the Comp

nt Comp any's

Co. any decisi

Ltd. on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Xi'an ding

Subsi

Grand to the

diary

KeCh Comp

of

uang any's Cash

contro

Pharm Sales Sales decisi bank April

lling Marke Marke CNIN

aceuti of of on- 0.81 0.00% 250 No accept 18

shareh t price t price FO

cal drugs drugs makin ance 2025

older

Techn g bill

of the

ology proce

Comp

Co. dures

any

Ltd. for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

Sheho accor

Subsi

ng ding

diary

Shuya to the

of

ng Comp Cash

contro

Plasm Sales Sales any's bank April

lling Marke Marke CNIN

a of of decisi 0.8 0.00% 57 No accept 18

shareh t price t price FO

Collec drugs drugs on- ance 2025

older

tion makin bill

of the

Statio g

Comp

n Co. proce

any

Ltd. dures

for

relate

d-

party

90Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

transa

ctions

Marke

t price

deter

mined

accor

ding

Guan Subsi

to the

ghan diary

Comp

Shuya of

any's Cash

ng contro

Sales Sales decisi bank April

Plasm lling Marke Marke CNIN

of of on- 0.69 0.00% 57 No accept 18

a shareh t price t price FO

drugs drugs makin ance 2025

Collec older

g bill

tion of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Danle Subsi

to the

ng diary

Comp

Shuya of

any's Cash

ng contro

Sales Sales decisi bank April

Plasm lling Marke Marke CNIN

of of on- 0.53 0.00% 57 No accept 18

a shareh t price t price FO

drugs drugs makin ance 2025

Collec older

g bill

tion of the

proce

Co. Comp

dures

Ltd. any

for

relate

d-

party

transa

ctions

Marke

t price

Subsi deter

Sichu diary mined

an of accor

Cash

Grand contro ding

Sales Sales bank April

Biotec lling to the Marke Marke CNIN

of of 0.42 0.00% 250 No accept 18

hnolo shareh Comp t price t price FO

drugs drugs ance 2025

gy older any's

bill

Co. of the decisi

Ltd. Comp on-

any makin

g

proce

91Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

Grand ding

Subsi

Life to the

diary

Scien Comp

of

ces any's Cash

contro

(Hang Sales Sales decisi bank April

lling Marke Marke CNIN

zhou) of of on- 0.2 0.00% 165 No accept 18

shareh t price t price FO

Pharm drugs drugs makin ance 2025

older

aceuti g bill

of the

cal proce

Comp

Co. dures

any

Ltd. for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

to the

Xi'an diary

Comp

Grand of

any's Cash

Deten contro Agenc Agenc

decisi bank April

Pharm lling y y Marke 2591. Marke CNIN

on- 0.12% 3879 No accept 18

aceuti shareh servic servic t price 79 t price FO

makin ance 2025

cal older es es

g bill

Co. of the

proce

Ltd. Comp

dures

any

for

relate

d-

party

transa

ctions

Marke

Chon

Assoc t price

gqing Form Form

iate of deter Cash

Peg- ulatio ulatio

the mined bank April

Bio n n Marke 226.9 Marke CNIN

Comp accor 0.01% 380 No accept 18

Bioph filling filling t price 7 t price FO

any's ding ance 2025

arm servic servic

subsid to the bill

Co. e e

iary Comp

Ltd.any's

92Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Subsi

Hangz to the

diary

hou Comp

of

Grand any's Cash

contro Techn Techn

Biolo decisi bank April

lling ical ical Marke Marke CNIN

gic on- 38.68 0.00% 200 No accept 18

shareh servic servic t price t price FO

Pharm makin ance 2025

older es es

aceuti g bill

of the

cal proce

Comp

Inc. dures

any

for

relate

d-

party

transa

ctions

Marke

t price

deter

mined

accor

ding

Grand Subsi

Trans Trans to the

Shuya diary

portati portati Comp

ng of

on on any's Cash

Life contro

and and decisi bank April

Scien lling Marke Marke CNIN

wareh wareh on- 5.91 0.00% 15 No accept 18

ces shareh t price t price FO

ousin ousin makin ance 2025

(Chen older

g g g bill

gdu) of the

servic servic proce

Co. Comp

e e dures

Ltd. any

for

relate

d-

party

transa

ctions

Beijin Subsi House House Marke Cash

April

g diary s and s and t price Marke 124.8 bank Marke CNIN

0.01% 70 Yes 18

Yanhu of buildi buildi deter t price 8 accept t price FO

2025

ang contro ngs ngs mined ance

93Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Real lling accor bill

Estate shareh ding

Co. older to the

Ltd. of the Comp

Comp any's

any decisi

on-

makin

g

proce

dures

for

relate

d-

party

transa

ctions

19554082

Total -- -- -- -- -- -- -- --

5.453.62

Details of significant sales returns Not applicable

The daily related party transactions between the Company and its subsidiaries and related

parties are expected to be RMB 408986200 in 2025 of which transactions with affiliated

Estimated total amount of daily

company of China Grand Enterprises amount to RMB 402286200 and transactions with

related party transactions expected

other related parties amount to RMB 6.7 million (for details please refer to the

to occur in the current period by

Announcement on the Expected Daily Related Party Transactions for 2025 disclosed by the

category and the actual fulfillment

Company on CNINFO onApril 18 2025). In the first half of 2025 the total amount of daily

during the reporting period (if any)

related party transactions between the Company and its subsidiaries and related parties was

RMB 195554500 which did not exceed the expected total amount.Reasons for significant differences

between transaction prices and Not applicable

market prices (if applicable)

2. Related party transactions arising from the acquisition or sale of assets or equity interests

□Applicable□Not applicable

During the reporting period the company did not have any related party transactions arising from the acquisition or sale of assets

or equity interests.

3. Related party transactions of joint investments abroad

□Applicable□Not applicable

The company did not have any related party transactions of joint investments abroad during the reporting period.

4. Related credit and debt transactions

□Applicable□Not applicable

The company did not have any related credit and debt transactions during the reporting period.

5. Transactions with related finance companies

□Applicable□Not applicable

There was no deposit loan credit or other financial business among the Company the finance company with which the Company

has established a relationship and the related parties.

94Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

6. Transactions between financial companies controlled by the Company and related parties

□Applicable□Not applicable

There was no deposit loan credit facility or other financial transactions between the finance companies controlled by the

Company and related parties.

7. Other significant related party transactions

□Applicable□Not applicable

The Company did not have other significant related party transactions during the reporting period.XII. Significant contracts and fulfillment

1. Trusteeship contracting and leasing matters

(1) Trusteeship

□Applicable□Not applicable

The company did not have trusteeship during the reporting period.

(2) Contracting

□Applicable□Not applicable

The company did not have any contracts during the reporting period.

(3) Leasing

□Applicable □Not applicable

Lease description

Refer to the relevant content in "Section VIII Financial Report - VII. Notes to consolidated financial statement items 82. Leasing"

Items that brought gains and losses to the Company amounting to more than 10% of the Company's total profit during the

reporting period

□Applicable□Not applicable

There was no leasing item that brought gains and losses to the Company amounting to more than 10% of the Company's total

profit during the reporting period.

2. Significant guarantees

□Applicable □Not applicable

Unit: RMB 10000

External guarantees by the Company and its subsidiaries (excluding guarantees for subsidiaries)

Name of Disclosu Actual Whether Whether

Actual Type of Counter-

guarante re date Guarante guarante Collatera Guarante it has it is a

of occurren guarante guarantee e quota ed l (if any) e period been guarante

recipient announc

ce date e e (if any)

amount fulfilled e for

ement related

95Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

regardin parties

g the

guarante

e quota

The company's guarantees for its subsidiaries

Disclosu

re date

Whether

of

Name of Actual Whether it is a

announc Actual Type of Counter-

guarante Guarante guarante Collatera Guarante it has guarante

ement occurren guarante guarante

e e quota ed l (if any) e period been e for

regardin ce date e e (if any)

recipient amount fulfilled related

g the

parties

guarante

e quota

Hangzho

u

Zhongm Joint and

ei several

April 18 July 04

Huadon 155000 164 liability None None 1 year No No

20242024

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 August

Huadon 155000 248 liability None None 1 year No No

2024062024

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 August

Huadon 155000 500 liability None None 1 year No No

2024262024

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 March

Huadon 155000 13540 liability None None 1 year No No

2024132025

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u Joint and

Zhongm several

April 18 January

ei 155000 10829 liability None None 1 year No No

2024202025

Huadon guarante

g e

Pharmac

96Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 April 15

Huadon 155000 6937 liability None None 1 year No No

20242025

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 April 25

Huadon 155000 3277 liability None None 1 year No No

20252025

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 May 15

Huadon 155000 9054 liability None None 1 year No No

20252025

g guarante

Pharmac e

eutical

Co. Ltd.Hangzho

u

Zhongm Joint and

ei several

April 18 June 17

Huadon 155000 3021 liability None None 1 year No No

20252025

g guarante

Pharmac e

eutical

Co. Ltd.Huadon

g

Medicin

e Supply

April 19

Chain 20000 10 years No No

2019

Manage

ment

(Jinhua)

Co. Ltd.Huadon

g

Medicin Joint and

e (Xi'an) several

July 22 July 19

Bodygua 5285 5285 liability None None 2 years No No

20242024

rd guarante

Pharmac e

eutical

Co. Ltd.Huadon April 18 37000 June 23 28537 Joint and None None 3 years No No

97Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

g 2025 2025 several

Medicin liability

e (Xi'an) guarante

Bodygua e

rd

Pharmac

eutical

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 October

e 16000 2000 liability None None 1 year No No

2024212024

Ningbo guarante

Sales e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 March

e 16000 2850 liability None None 1 year No No

2024172025

Ningbo guarante

Sales e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 March

e 16000 3000 liability None None 1 year No No

2024192025

Ningbo guarante

Sales e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 May 15

e 16000 2850 liability None None 1 year No No

20252025

Ningbo guarante

Sales e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 June 27

e 16000 950 liability None None 1 year No No

20252025

Ningbo guarante

Sales e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 June 27

e 16000 950 liability None None 1 year No No

20252025

Ningbo guarante

Sales e

Co. Ltd.Huadon Joint and

g several

April 18 June 13

Medicin 15000 3800 liability None None 1 year No No

20252025

e Jinhua guarante

Co. Ltd. e

Huadon April 18 January Joint and

19300 4750 None None 1 year No No

g 2024 17 2025 several

98Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Medicin liability

e guarante

Huzhou e

Co. Ltd.Huadon

Joint and

g

several

Medicin April 18 May 15

19300 2850 liability None None 1 year No No

e 2025 2025

guarante

Huzhou

e

Co. Ltd.Huadon

Joint and

g

several

Medicin April 18 June 12

19300 1900 liability None None 1 year No No

e 2025 2025

guarante

Huzhou

e

Co. Ltd.Huadon

Joint and

g

several

Medicin April 18 June 12

19300 2000 liability None None 1 year No No

e 2025 2025

guarante

Huzhou

e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 March

e 20000 2850 liability None None 1 year No No

2024132025

Shaoxin guarante

g Co. e

Ltd.Huadon

g Joint and

Medicin several

April 18 March

e 20000 3000 liability None None 1 year No No

2024192025

Shaoxin guarante

g Co. e

Ltd.Huadon

g Joint and

Medicin several

April 18 May 20

e 20000 2850 liability None None 1 year No No

20252025

Shaoxin guarante

g Co. e

Ltd.Huadon

g Joint and

Medicin several

April 18 June 27

e 20000 950 liability None None 1 year No No

20252025

Shaoxin guarante

g Co. e

Ltd.Huadon

g Joint and

Medicin several

April 18 June 27

e 20000 950 liability None None 1 year No No

20252025

Shaoxin guarante

g Co. e

Ltd.

99Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 January

5000 23 liability None None 1 year No No

ou) 2024 13 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 January

5000 36 liability None None 1 year No No

ou) 2024 14 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 May 26

5000 100 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 May 27

5000 32 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 May 30

5000 17 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Joint and

Medicin

several

e April 18 June 03

5000 34 liability None None 1 year No No

(Hangzh 2025 2025

guarante

ou)

e

Biologic

al

100Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 06

5000 21 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 09

5000 39 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 10

5000 2 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 13

5000 134 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 16

5000 35 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

Joint and

g

several

Medicin April 18 June 19

5000 36 liability None None 1 year No No

e 2025 2025

guarante

(Hangzh

e

ou)

101Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Biologic

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 20

5000 10 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 23

5000 120 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 25

5000 6 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 27

5000 5 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 June 30

5000 51 liability None None 1 year No No

ou) 2025 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon Joint and

g April 18 February several

5000 16 None None 1 year No No

Medicin 2024 17 2025 liability

e guarante

102Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(Hangzh e

ou)

Biologic

al

Product

Co. Ltd.Huadon

g

Medicin

Joint and

e

several

(Hangzh April 18 February

5000 68 liability None None 1 year No No

ou) 2024 27 2025

guarante

Biologic

e

al

Product

Co. Ltd.Huadon Joint and

Proporti

g several

April 18 May 23 onal

Medicin 15000 3750 liability None 1 year No No

2025 2025 guarante

e Lishui guarante

e

Co. Ltd. e

Huadon Joint and

Proporti

g several

April 18 June 27 onal

Medicin 15000 3000 liability None 1 year No No

2025 2025 guarante

e Lishui guarante

e

Co. Ltd. e

Huadon

Joint and

g

several

Medicin April 18 April 29 Equity

2500 475 liability None 1 year No No

e 2025 2025 pledge

guarante

Daishan

e

Co. Ltd.Huadon

g Joint and

Medicin several

April 18 April 29

e Cunde 7600 950 liability None None 1 year No No

20252025

(Zhoush guarante

an) Co. e

Ltd.Huadon

g Joint and

Medicin several

April 18 June 13

e Cunde 7600 2000 liability None None 1 year No No

20252025

(Zhoush guarante

an) Co. e

Ltd.Hangzho

u Joint and

Huadon several

April 18 June 12

g 10000 1900 liability None None 1 year No No

20252025

Medicin guarante

e Chain e

Co. Ltd.Hangzho Joint and

u April 18 June 13 several

10000 2000 None None 1 year No No

Huadon 2025 2025 liability

g guarante

103Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Medicin e

e Chain

Co. Ltd.Huadon

g

Medicin April 18

10000 1 year No No

e 2025

(Jiaxing)

Co. Ltd.Zhejiang

Yiqun

Biologic

al April 18

2000 1 year No No

Pharmac 2025

eutical

Trading

Co. Ltd.Hangzho

u Huayi

April 18

Pharmac 3000 1 year No No

2025

y Co.Ltd.Hangzho

u

Huadon

April 18

g Wulin 1000 1 year No No

2025

Pharmac

y Co.Ltd.Huadon

g

Medicin

e

Internati April 18

10000 1 year No No

onal 2025

Trade

(Zhejian

g) Co.Ltd.Huadon

g

Pharmac

eutical April 18

5000 1 year No No

Sales 2025

(Zhejian

g) Co.Ltd.Huadon Providin

g Joint and g

Medicin several financial

April 18 August

e 24000 1000 liability None loans in 1 year No No

2024062024

Wenzho guarante proporti

u Co. e on to

Ltd. equity

Huadon Joint and Providin

April 18 August

g 24000 1000 several None g 1 year No No

2024082024

Medicin liability financial

104Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

e guarante loans in

Wenzho e proporti

u Co. on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin Septemb several financial

April 18

e 24000 er 04 1000 liability None loans in 1 year No No

2024

Wenzho 2024 guarante proporti

u Co. e on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin Septemb several financial

April 18

e 24000 er 10 1000 liability None loans in 1 year No No

2024

Wenzho 2024 guarante proporti

u Co. e on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin Septemb several financial

April 18

e 24000 er 13 1000 liability None loans in 1 year No No

2024

Wenzho 2024 guarante proporti

u Co. e on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin several financial

April 18 October

e 24000 1000 liability None loans in 1 year No No

2024092024

Wenzho guarante proporti

u Co. e on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin several financial

April 18 October

e 24000 1000 liability None loans in 1 year No No

2024162024

Wenzho guarante proporti

u Co. e on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin several financial

April 18 January

e 24000 3050 liability None loans in 1 year No No

2024082025

Wenzho guarante proporti

u Co. e on to

Ltd. equity

Huadon Providin

g Joint and g

Medicin several financial

April 18 April 23

e 24000 2350 liability None loans in 1 year No No

20252025

Wenzho guarante proporti

u Co. e on to

Ltd. equity

Hangzho Joint and

Septemb

u April 18 several

60000 er 13 196 None None 1 year No No

Zhongm 2024 liability

2024

ei guarante

105Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Huadon e

g

Pharmac

eutical

Jiangdon

g Co.Ltd.Hangzho

u

Zhongm

ei Joint and

Huadon Septemb several

April 18

g 60000 er 24 222 liability None None 1 year No No

2024

Pharmac 2024 guarante

eutical e

Jiangdon

g Co.Ltd.Hangzho

u

Zhongm

ei Joint and

Huadon several

April 18 February

g 60000 173 liability None None 1 year No No

2024272025

Pharmac guarante

eutical e

Jiangdon

g Co.Ltd.Hangzho

u

Zhongm

ei

Huadon

April 18

g 60000 1 year No No

2025

Pharmac

eutical

Jiangdon

g Co.Ltd.Hubei

Joint and

Magic Proporti

several

Health April 18 July 26 onal

9000 361 liability None 1 year No No

Technol 2024 2024 guarante

guarante

ogy Co. e

e

Ltd.Hubei

Joint and

Magic Proporti

several

Health April 18 August onal

9000 224 liability None 1 year No No

Technol 2024 05 2024 guarante

guarante

ogy Co. e

e

Ltd.Hubei

Joint and

Magic Proporti

Septemb several

Health April 18 onal

9000 er 27 30 liability None 1 year No No

Technol 2024 guarante

2024 guarante

ogy Co. e

e

Ltd.

106Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Hubei

Joint and

Magic Proporti

several

Health April 18 October onal

9000 64 liability None 1 year No No

Technol 2024 25 2024 guarante

guarante

ogy Co. e

e

Ltd.Hubei

Joint and

Magic Proporti

several

Health April 18 February onal

9000 10 liability None 1 year No No

Technol 2024 28 2025 guarante

guarante

ogy Co. e

e

Ltd.Hubei

Joint and

Magic Proporti

several

Health April 18 March onal

9000 67 liability None 1 year No No

Technol 2024 28 2025 guarante

guarante

ogy Co. e

e

Ltd.Hubei

Joint and

Magic Proporti

several

Health April 18 April 28 onal

3600 147 liability None 1 year No No

Technol 2025 2025 guarante

guarante

ogy Co. e

e

Ltd.Hubei

Joint and

Magic Proporti

several

Health April 18 June 27 onal

3600 124 liability None 1 year No No

Technol 2025 2025 guarante

guarante

ogy Co. e

e

Ltd.Joyang

April 18

Laborato 5000 1 year No No

2025

ries

Anhui

Joint and

Meihua

several

Hi-Tech April 18 June 27

5000 347 liability None None 1 year No No

Pharmac 2025 2025

guarante

eutical

e

Co. Ltd.Gongwe

i

Lianchu

ang

April 18

(Shangh 2000 1 year No No

2025

ai)

Biotechn

ology

Co. Ltd.Wuhu

Huaren

Science

April 18

and 3000 1 year No No

2025

Technol

ogy Co.Ltd.Huadon April 18

20000 1 year No No

g 2025

107Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Medicin

e

(Guizho

u)

Pharmac

eutical

Co. Ltd.Bailing

Health

Science April 18

1200 1 year No No

(Hangzh 2025

ou) Co.Ltd.Jiangsu

Nanjing

Nongda

April 18

Animal 1000 1 year No No

2025

Pharmac

eutical

Co. Ltd.Total approved Total actual

guarantee quota for guarantee amount

subsidiaries during 458200 for subsidiaries 132824

the reporting period during the reporting

(B1) period (B2)

Total actual

Total approved

guarantee balance

guarantee quota for

for subsidiaries at

subsidiaries at the 791785 149118

the end of the

end of the reporting

reporting period

period (B3)

(B4)

Guarantees provided by subsidiaries to other subsidiaries

Disclosu

re date

Whether

of

Name of Actual Whether it is a

announc Actual Type of Counter-

guarante Guarante guarante Collatera Guarante it has guarante

ement occurren guarante guarante

e e quota ed l (if any) e period been e for

regardin ce date e e (if any)

recipient amount fulfilled related

g the

parties

guarante

e quota

Chongqi

Joint and

ng Peg- Proporti

several

Bio April 18 May 07 onal

1396 120 liability None 3 years No Yes

Biophar 2024 2024 guarante

guarante

m Co. e

e

Ltd.Chongqi

Joint and

ng Peg- Proporti

several

Bio April 18 July 26 onal

1396 64 liability None 3 years No Yes

Biophar 2024 2024 guarante

guarante

m Co. e

e

Ltd.Chongqi Joint and Proporti

April 18 August

ng Peg- 1396 34 several None onal 3 years No Yes

2024212024

Bio liability guarante

108Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Biophar guarante e

m Co. e

Ltd.Chongqi

Joint and

ng Peg- Proporti

several

Bio April 18 August onal

1396 50 liability None 3 years No Yes

Biophar 2024 23 2024 guarante

guarante

m Co. e

e

Ltd.Chongqi

Joint and

ng Peg- Proporti

Septemb several

Bio April 18 onal

1396 er 02 53 liability None 3 years No Yes

Biophar 2024 guarante

2024 guarante

m Co. e

e

Ltd.Chongqi

ng Peg-

Bio April 18

1396 1 year No Yes

Biophar 2025

m Co.Ltd.Total approved Total actual

guarantee quota for guarantee amount

subsidiaries during 1396 for subsidiaries 0

the reporting period during the reporting

(C1) period (C2)

Total actual

Total approved

guarantee balance

guarantee quota for

for subsidiaries at

subsidiaries at the 2793 321

the end of the

end of the reporting

reporting period

period (C3)

(C4)

Total Company guarantees (sum of the fore-mentioned three major items)

Total approved Total actual

guarantee quota guarantee amount

during the reporting 459596 during the reporting 132824

period (A1 + B1 + period (A2 + B2 +

C1) C2)

Total approved Total actual

guarantee quota at guarantee balance at

the end of the 794578 the end of the 149439

reporting period (A3 reporting period (A4

+ B3 + C3) + B4 + C4)

Proportion of total actual guarantees (i.e. A4

6.29%

+ B4 + C4) in the Company's net assets

Incl.:

Outstanding debt guarantees provided

directly or indirectly to guarantee recipients

39075

with an asset liability ratio exceeding 70%

(E)

Total of the above three guaranteed amounts

39075

(D + E + F)

Explanation of specific situations for composite guarantee

109Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

3. Entrusted wealth management

□Applicable□Not applicable

The Company did not have any entrusted wealth management during the reporting period.

4. Other significant contracts

□Applicable□Not applicable

The Company did not have any other significant contracts during the reporting period.XIII. Explanation for other significant matters

□Applicable□Not applicable

The Company had no other significant matters requiring explanation during the reporting period.XIV. Significant matters of the Company's subsidiaries

□Applicable □Not applicable

As of the date of the Report the liquidation of Huadong Ningbo Medicine Co. Ltd. has

reached a stage under the supervision of the court where the major assets have been disposed of

with only the collection of remaining receivables pending. The Company will actively advance

the subsequent liquidation. During this reporting period the Company recognized an investment

income of RMB -6672178.39 using the equity method.

110Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section VI Changes in Shares and Shareholders

I. Changes in shares

1. Changes in shares

Unit: Shares

Before this change Increase or decrease in this change (+ -) After this change

Issuance Conversio

Issuance of n of

Proportio Proportio

Quantity of new additional provident Others Subtotal Quantity

n n

shares shares as fund into

dividends shares

I. Shares

with

restricted

23213200.13%000-185500-18550021358200.12%

sale

condition

s

1.

Shares

00.00%0000000.00%

held by

the State

2.

Shares

held by

the state- 0 0.00% 0 0 0 0 0 0 0.00%

owned

legal

person

3.

Other

shares

22533200.13%000-185500-18550020678200.12%

held by

domestic

capital

Incl.:

Shares

held by

00.00%0000000.00%

domestic

legal

persons

Shar

es held by

domestic 2253320 0.13% 0 0 0 -185500 -185500 2067820 0.12%

natural

persons

4.

Shares 68000 0.00% 0 0 0 0 0 68000 0.00%

held by

overseas

111Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

capital

Incl.:

shares

held by

00.00%0000000.00%

overseas

legal

persons

Shar

es held by

overseas 68000 0.00% 0 0 0 0 0 68000 0.00%

natural

persons

II. Shares

without

restricted 1751941 1751941

99.87%0000099.88%

sale 228 228

condition

s

1.

RMB 1751941 1751941

99.87%0000099.88%

common 228 228

shares

2.

Foreign

capital

00.00%0000000.00%

shares

listed in

China

3.

Foreign

capital

00.00%0000000.00%

shares

listed

overseas

4.

00.00%0000000.00%

Others

III. Total

17542621754077

number of 100.00% 0 0 0 -185500 -185500 100.00%

548048

shares

Reason for changes in shares

□Applicable □Not applicable

During the reporting period the Company repurchased and canceled a portion of restricted

stock under the Restricted Stock Incentive Plan in 2022. The number of restricted stocks

repurchased and canceled was 185500 resulting in a decrease of 185500 shares in the

Company's total share count including a reduction of 185500 shares with restricted sale

conditions.Approval of changes in shares

□Applicable □Not applicable

112Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(1) On November 25 2024 the Company convened the 30th Meeting of the 10th Board of

Directors and the 20th Meeting of the 10th Board of Supervisors during which the Proposal on

Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on

Repurchase and Cancellation of Certain Restricted Stocks were reviewed and approved. The Board

of Directors agreed to repurchase and cancel a total of 185500 restricted stocks that had been

granted but not yet released from restrictions and these shares corresponding to an incentive

recipient who was no longer eligible due to resignation 16 incentive recipients whose individual

performance assessment results for the second restriction release period were deemed unqualified

and an incentive recipient of the reserved shares whose individual performance assessment results

for the first restriction release period were deemed unqualified. The Board of Supervisors provided

verification opinions on the relevant matters with related reports prepared by the lawyers and

independent financial advisers. On November 27 2024 the Company disclosed the relevant

announcement on CNINFO.

(2) On December 20 2024 the Company convened its 2nd Extraordinary General Meeting in

2024 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the

Proposal on Increasing the Business Scope Altering the Registered Capital and Amending the

Articles of Association were reviewed and approved. On the same day the Company disclosed the

Announcement on Repurchase and Cancellation of Certain Restricted Stocks to Reduce Registered

Capital and Notify the Creditors. As of February 5 2025 the benchmark date for capital

verification i.e. within forty-five days from the date when the Company announced the reduction

of capital no creditor requested the Company to pay off its debts or provide corresponding

guarantees.

(3) On March 28 2025 the Company disclosed the Announcement on the Completion of the

Repurchase and Cancellation of Certain Restricted Stocks. On March 26 2025 the Company

completed the procedures for repurchase and cancellation of 185500 restricted stocks in Shenzhen

Branch of China Securities Depository and Clearing Corporation Limited.Transfer of changed shares

□Applicable □Not applicable

In March 2025 the Company submitted the relevant registration materials to the Shenzhen

Branch of China Securities Depository and Clearing Corporation Limited for the repurchase and

cancellation of 185500 shares involved in the equity incentive plan. In the same month the

Shenzhen Branch of China Securities Depository and Clearing Corporation Limited issued the

Confirmation for Registration of Securities Transfer to the Company and the total share capital of

the Company was reduced from 1754262548.00 shares to 1754077048.00 shares.

113Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Progress of implementation of share repurchase

□Applicable□Not applicable

Progress in the implementation of the reduction of repurchased shares via centralized bidding

□Applicable□Not applicable

Impact of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to

common shareholders of the Company in the last year and the latest period

□Applicable □Not applicable

Based on the total shares of 1754262548.00 before changes in share capital the Company's

basic and diluted earnings per share for the first half of 2025 are RMB 1.0293/share and RMB

1.0345/share respectively and net assets per share attributable to common shareholders are RMB

13.59/share. After changes in share capital with total shares of 1754077048.00 the basic earnings

per share remain RMB 1.0293/share the diluted earnings per share are RMB 1.0346/share and net

assets per share attributable to common shareholders remain RMB 13.59/share.Overall the aforementioned changes in share capital did not have a significant impact on the

Company's financial indicators for the first half of 2025 including basic and diluted earnings per

share as well as net assets per share attributable to common shareholders.Other contents deemed necessary by the Company or required to be disclosed by securities regulatory authorities

□Applicable□Not applicable

2. Changes in restricted shares

□Applicable □Not applicable

Unit: Shares

Number of Number of Number of

shares subject shares released Number of shares subject

Name of to sale from sales shares newly to sale Reasons for Release date of

shareholder restrictions at restriction in restricted in the restrictions at restricted sale restricted sale

the beginning the current current period the end of the

of the period period period

In accordance

with

Restricted regulations on

shares held by the

Zhang Jianfei 60000 0 0 60000

senior management of

managers shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Zhang Jianfei 60000 0 0 60000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

Zhang Jianfei 52500 0 0 52500 Restricted In accordance

114Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

shares held by with

senior regulations on

managers the

management of

shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Lv Liang 80000 0 0 80000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

In accordance

with

Restricted regulations on

shares held by the

Lv Liang 70000 0 0 70000

senior management of

managers shares held by

senior

managers

In accordance

with

Restricted regulations on

shares held by the

Zhu Li 22500 0 0 22500

senior management of

managers shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Zhu Li 60000 0 0 60000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

In accordance

with

Restricted regulations on

shares held by the

Zhu Li 52500 0 0 52500

senior management of

managers shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Chen Bo 40000 0 0 40000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

Restricted In accordance

Chen Bo 35000 0 0 35000

shares held by with

115Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

senior regulations on

managers the

management of

shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Qiu Renbo 40000 0 0 40000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

In accordance

with

Restricted regulations on

shares held by the

Qiu Renbo 35000 0 0 35000

senior management of

managers shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Wu Hui 105000 0 -45000 60000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

In accordance

with

Restricted regulations on

shares held by the

Wu Hui 7500 0 0 7500

senior management of

managers shares held by

senior

managers

In accordance

with the

Restricted relevant

shares under provisions of

Xu Junfang 60000 0 0 60000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

In accordance

with the

Restricted relevant

LIU

shares under provisions of

DONGZHOU 60000 0 0 60000

the equity the Company's

JEFFERY

incentive plan Restricted

Stock Incentive

Plan in 2022

Restricted In accordance

Zhang Yun 40000 0 0 40000 shares under with the

the equity relevant

116Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

incentive plan provisions of

the Company's

Restricted

Stock Incentive

Plan in 2022

In accordance

with the

Restricted relevant

shares under provisions of

Yang Chu 40000 0 0 40000

the equity the Company's

incentive plan Restricted

Stock Incentive

Plan in 2022

In accordance

with the

relevant

provisions of

Other directors Restricted

the Company's

mid-level shares under

Restricted

management the equity

Stock Incentive

and core incentive plan

1401320 0 -140500 1260820 Plan in 2022

technical restricted

and the

(business) shares held by

regulations on

personnel of the senior

the

Company managers

management of

shares held by

senior

managers

Total 2321320 0 -185500 2135820 -- --

II. Offering and listing of securities

□Applicable□Not applicable

III. Number of shareholders and shareholding

Unit: Shares

Total number of common Total number of preferred shareholders

shareholders at the end of 69844 with restored voting rights at the end of 0

the reporting period the reporting period (if any)

Shareholdings of shareholders holding more than 5% of shares or the top 10 shareholders (excluding shares lent through

refinancing)

Number of Number of Number of Pledged marked or frozen

Increase/de

shares held shares held shares held status

crease

Name of Nature of Shareholdi at the end with without

during the

shareholder shareholder ng ratio of the restricted restricted

reporting Status of

reporting sale sale Quantity

period shares

period conditions conditions

Domestic

China

non-state-

Grand 73093815 73093815 14388000

owned 41.67% 0 0 Pledged

Enterprises 7 7 0

legal

INC.person

Hangzhou State- 16.42% 28800000 0 0 28800000 Not 0

117Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Huadong owned 0 0 applicable

Medicine legal

Group Co. person

Ltd.Hong Kong

Securities Overseas

Not

Clearing legal 2.27% 39838369 -6800259 0 39838369 0

applicable

Company person

Limited

Industrial

and

Commercia

l Bank of

China

Limited -

Zhong Ou Not

Others 1.39% 24439484 5289841 0 24439484 0

AMC applicable

Medical

and Health

Hybrid

Securities

Investment

Fund

China Domestic

Securities non-state-

Not

Finance owned 1.26% 22186818 - 0 22186818 0

applicable

Corporatio legal

n Limited person

National

Social

Security Not

Others 1.00% 17589744 17589744 0 17589744 0

Fund - applicable

Portfolio

112

Industrial

and

Commercia

l Bank of

China

Not

Limited - Others 0.89% 15583245 527400 0 15583245 0

applicable

Huatai-PB

CSI 300

Open-

ended

Index Fund

China

Constructio

n Bank

Corporatio

n - E Fund

CSI 300

Not

Medical Others 0.82% 14412410 -1790722 0 14412410 0

applicable

and Health

Trading

Open Index

Securities

Investment

Fund

118Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

New China

Life

Insurance

Co. Ltd. -

Dividend - Not

Others 0.80% 14055881 9421740 0 14055881 0

Individual applicable

Dividend -

018L-

FH002

Shenzhen

China

Constructio

n Bank

Corporatio

n - ICBC

Credit

Not

Suisse Others 0.68% 12000000 -2500000 0 12000000 0

applicable

Frontier

Medical

Equity

Securities

Investment

Fund

Strategic investors or

general legal persons

becoming top 10

Not applicable

shareholders due to

placing new shares (if

any)

Description of affiliation

The Company did not know whether there was any relationship among the above shareholders or

or concerted action of the

whether they were parties acting in concert.above shareholders

Explanation of the above

shareholders involved in

proxy/trusted voting rights Not applicable

and waiver of voting

rights

Special notes on the

existence of repurchase

special accounts among Not applicable

the top 10 shareholders (if

any)

Shareholdings of top 10 shareholders without restricted sale conditions (excluding shares lent through refinancing and restricted

shares held by senior managers)

Type of shares

Number of shares held without restricted sale conditions at the end of

Name of shareholder

the reporting period Type of Quantity

shares

RMB

China Grand Enterprises 73093815

730938157 common

INC. 7

shares

RMB

Hangzhou Huadong 28800000

288000000 common

Medicine Group Co. Ltd. 0

shares

Hong Kong Securities RMB

3983836939838369

Clearing Company common

119Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Limited shares

Industrial and

Commercial Bank of

RMB

China Limited - Zhong

24439484 common 24439484

Ou AMC Medical and

shares

Health Hybrid Securities

Investment Fund

RMB

China Securities Finance

22186818 common 22186818

Corporation Limited

shares

RMB

National Social Security

17589744 common 17589744

Fund - Portfolio 112

shares

Industrial and

Commercial Bank of RMB

China Limited - Huatai- 15583245 common 15583245

PB CSI 300 Open-ended shares

Index Fund

China Construction Bank

Corporation - E Fund CSI

RMB

300 Medical and Health

14412410 common 14412410

Trading Open Index

shares

Securities Investment

Fund

New China Life Insurance

RMB

Co. Ltd. - Dividend -

14055881 common 14055881

Individual Dividend -

shares

018L-FH002 Shenzhen

China Construction Bank

Corporation - ICBC RMB

Credit Suisse Frontier 12000000 common 12000000

Medical Equity Securities shares

Investment Fund

Description of the related

party relationship or

concerted action among

the top 10 shareholders

holding unrestricted The Company did not know whether there was any relationship among the above shareholders or

shares and between the whether they were parties acting in concert.top 10 shareholders

holding unrestricted

shares and the top 10

shareholders.Description of the

participation in securities

As of the end of the current reporting period none of the top 10 common shareholders of the

margin trading business of

Company held shares of the Company through securities margin trading accounts.the top 10 common

shareholders (if any)

Participation in the lending of shares through refinancing business of shareholders holding more than 5% of shares the top 10

shareholders and the top 10 shareholders holding tradable shares without restricted sale conditions

□Applicable□Not applicable

Change in top 10 shareholders and top 10 shareholders holding tradable shares without restricted sale conditions due to

lending/returning of shares through refinancing as compared to the previous period

□Applicable□Not applicable

Whether the top 10 common shareholders and the top 10 common shareholders with unrestricted shares in the Company engage in

120Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

the agreed repurchase transactions during the reporting period

□Yes□No

The top 10 common shareholders and the top 10 common shareholders with unrestricted shares in the Company did not engage in

any agreed repurchase transactions during the reporting period.IV. Changes in shareholdings of directors supervisors and senior managers

□Applicable □Not applicable

Number

Number

Number of Number

Number Number of

of shares Number restricted of

of shares of shares restricted

held at of shares stocks restricted

increased decreased stocks

the held at granted at stocks

Position in the in the granted in

Name Position beginning the end of the granted at

status current current the

of the the period beginning the end of

period period current

period (Unit: of the the period

(Unit: (Unit: period

(Unit: share) period (Unit:

share) share) (Unit:

share) (Unit: share)

share)

share)

Deputy

Incumben

Wu Hui General 150000 0 45000 105000 105000 0 60000

t

Manager

Total -- -- 150000 0 45000 105000 105000 0 60000

Note: In March 2025 the Company canceled 45000 restricted stocks held by Wu Hui the Deputy General Manager of the

Company in accordance with relevant regulations of the Restricted Stock Incentive Plan in 2022.V. Changes in controlling shareholders or actual controllers

Change in controlling shareholder during the reporting period

□Applicable□Not applicable

There was no change in the controlling shareholder of the Company during the reporting period.Change in actual controller during the reporting period

□Applicable□Not applicable

There was no change in the actual controller of the Company during the reporting period.

121Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

VI. Relevant situation of preferred shares

□Applicable□Not applicable

The Company did not have preferred shares during the reporting period.

122Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section VII. Relevant Situation of Bonds

□Applicable□Not applicable

123Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Section VIII. Financial Reports

I. Audit report

Whether the semi-annual financial report has been audited

□Yes□No

The Company's semi-annual financial report has not been audited.II. Financial statements

The unit in the notes to financial statements is: RMB

1. Consolidated balance sheet

Prepared by: Huadong Medicine Co. Ltd.June 30 2025

Unit: RMB

Item Closing balance Opening balance

Current assets:

Monetary funds 5160515681.60 5276440245.36

Deposit reservation for balance

Lendings to banks and other financial

institutions

Trading financial assets

Derivative financial assets

Notes receivable 10757495.21 10696341.24

Accounts receivable 9130033608.54 8425358862.23

Receivables financing 1248881871.60 1677636420.09

Prepayments 383679254.50 400291510.71

Premium receivable

Reinsurance accounts receivable

Reinsurance contract reserve

receivable

Other receivables 597030042.88 402870356.31

Incl.: Interest receivable

Dividends receivable 1874730.60 223608.84

Financial assets purchased for resale

Inventory 5029505978.33 4776397278.01

Incl.: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 75925015.51 82099747.34

124Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Total current assets 21636328948.17 21051790761.29

Non-current assets:

Loans and advances issued

Debt investments

Other debt investments

Long-term receivables

Long-term equity investment 1511055130.79 1543646404.76

Investment in other equity instruments 665880883.04 603232766.22

Other non-current financial assets

Investment property 11394409.57 11842042.67

Fixed assets 4282121438.14 4422300775.01

Construction in progress 1037144674.62 836739481.60

Productive biological assets

Oil and gas assets

Right-of-use assets 157830603.00 149504562.99

Intangible assets 3830341782.22 3644956428.71

Incl.: Data resources

Development expenditure 1235542745.11 1033392377.69

Incl.: Data resources

Goodwill 2949911243.09 2913334523.63

Long-term deferred expenses 19556817.98 22601572.13

Deferred income tax assets 257271959.07 221848889.06

Other non-current assets 1221068305.98 1423855781.39

Total non-current assets 17179119992.61 16827255605.86

Total assets 38815448940.78 37879046367.15

Current liabilities:

Short-term borrowings 1872106049.23 2312339143.21

Borrowings from the central bank

Borrowings from other banks and

other financial institutions

Trading financial liabilities

Derivative financial liabilities

Notes payable 2501133508.87 2576685923.31

Accounts payable 5572220540.67 4467770810.96

Advance receipts 1480523.27 1115173.00

Contract liabilities 122763179.08 173609109.58

Expense for financial assets sold for

repurchase

Deposits taken and interbank deposits

Receivings from vicariously traded

securities

Receivings from vicariously sold

securities

125Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Employee compensation payable 290032508.97 417133101.11

Taxes and dues payable 425207395.26 645950867.22

Other payables 2976576533.11 2849833595.48

Incl.: Interests payable

Dividends payable 134138219.60 125024219.60

Handling charges and commissions

payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one

101669786.32330528920.89

year

Other current liabilities 16118197.92 19268728.25

Total current liabilities 13879308222.70 13794235373.01

Non-current liabilities:

Provision for insurance contracts

Long-term borrowings 299738501.52 14262841.05

Bonds payable

Incl.: Preferred share

Perpetual bonds

Lease liabilities 85626580.16 71857938.46

Long-term payables 26053251.06 24715073.51

Long-term employee compensation

payable

Estimated liabilities 32347741.22 28985982.19

Deferred revenue 175663921.73 183855718.48

Deferred income tax liabilities 201704224.30 197378528.33

Other non-current liabilities

Total non-current liabilities 821134219.99 521056082.02

Total liabilities 14700442442.69 14315291455.03

Owners' equity:

Share capital 1754077048.00 1754262548.00

Other equity instruments

Incl.: Preferred share

Perpetual bonds

Capital reserve 2416978493.26 2550780602.69

Less: Treasury share 42168791.67 46804116.67

Other comprehensive income -26842092.12 -50598204.17

Special reserves

Surplus reserves 1395568477.98 1395568477.98

General risk reserves

Retained earnings 18254304262.55 17456842089.53

Total owners' equity attributable to the

23751917398.0023060051397.36

parent company

Minority interests 363089100.09 503703514.76

Total owners' equity 24115006498.09 23563754912.12

Total liabilities and owners' equity 38815448940.78 37879046367.15

Legal representative: Lv Liang Person in charge of accounting: Lv Liang Person in charge of the accounting department:

126Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Qiu Renbo

2. Balance sheet of the parent company

Unit: RMB

Item Closing balance Opening balance

Current assets:

Monetary funds 3953981327.21 3983448123.02

Trading financial assets

Derivative financial assets

Notes receivable 10757495.21 10696341.24

Accounts receivable 4804218091.41 4662202972.85

Receivables financing 292875429.70 541117016.27

Prepayments 84815482.40 188207568.34

Other receivables 5533018905.96 3038802968.09

Incl.: Interest receivable

Dividends receivable 2092686000.00 83200000.00

Inventory 3024597267.38 2503932187.23

Incl.: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets

Total current assets 17704263999.27 14928407177.04

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investment 6171412409.45 6006736952.86

Investment in other equity instruments 10080000.00 10080000.00

Other non-current financial assets

Investment property 6027529.66 6260645.98

Fixed assets 140125410.17 145702063.07

Construction in progress 1480617.86 1191031.68

Productive biological assets

Oil and gas assets

Right-of-use assets 3652972.88 5766631.35

Intangible assets 121014462.84 133847061.52

Incl.: Data resources

Development expenditure

Incl.: Data resources

Goodwill

Long-term deferred expenses 3893090.71 3873974.93

127Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Deferred income tax assets 61984737.57 57148901.05

Other non-current assets 288514253.60 309896009.87

Total non-current assets 6808185484.74 6680503272.31

Total assets 24512449484.01 21608910449.35

Current liabilities:

Short-term borrowings 990492967.93 1281604281.83

Trading financial liabilities

Derivative financial liabilities

Notes payable 1266619985.33 1017985699.91

Accounts payable 3897839081.08 2957801912.13

Advance receipts

Contract liabilities 71808441.84 74839113.94

Employee compensation payable 5756850.29 13536480.77

Taxes and dues payable 74396503.49 84182562.88

Other payables 5277746386.19 4502104700.45

Incl.: Interests payable

Dividends payable 224219.60 224219.60

Liabilities held for sale

Non-current liabilities due within one

42677475.9151064784.14

year

Other current liabilities 9182071.89 9618803.23

Total current liabilities 11636519763.95 9992738339.28

Non-current liabilities:

Long-term borrowings

Bonds payable

Incl.: Preferred share

Perpetual bonds

Lease liabilities

Long-term payables

Long-term employee compensation

payable

Estimated liabilities

Deferred revenue 29152473.81 30435411.27

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 29152473.81 30435411.27

Total liabilities 11665672237.76 10023173750.55

Owners' equity:

Share capital 1754077048.00 1754262548.00

Other equity instruments

Incl.: Preferred share

Perpetual bonds

Capital reserve 2344638822.00 2346443494.22

Less: Treasury share 42168791.67 46804116.67

Other comprehensive income

128Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Special reserves

Surplus reserves 1473424237.42 1473424237.42

Retained earnings 7316805930.50 6058410535.83

Total owners' equity 12846777246.25 11585736698.80

Total liabilities and owners' equity 24512449484.01 21608910449.35

3. Consolidated profit statement

Unit: RMB

Item First half of 2025 First half of 2024

I. Total operating revenue 21674928965.21 20965065605.67

Incl.: Operating revenue 21674928965.21 20965065605.67

Interest income

Premiums earned

Handling charges and

commissions revenue

II. Total operating costs 19418419774.58 18876799219.53

Incl.: Operating costs 14327396132.90 14109803647.16

Interest expenditure

Handling charges and

commissions expenditure

Surrender value

Net payments for insurance

claims

Net provision for insurance

liabilities

Expense for insurance policy

dividends

Reinsurance expenses

Taxes and surcharges 114585169.40 111008570.22

Selling expenses 3229044236.81 3274822873.39

Management expenses 725296086.80 714633116.91

R&D expenses 999673972.93 643106566.65

Financial expenses 22424175.74 23424445.20

Incl.: Interest expense 56147464.39 55550660.47

Interest income 45613834.96 53142421.17

Plus: Other incomes 144290664.93 93707046.82

Investment income (loss

-67265820.65-47845863.81

expressed with "-")

Incl.: Investment income in

-35365772.99-25256184.91

associates and joint ventures

Income from

derecognition of financial assets

measured on the basis of amortized costs

Exchange gains (loss expressed

with "-")

Net exposure hedging gains (loss

129Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

expressed with "－")

Gains from changes in fair value

(loss expressed with "-")

Credit impairment loss (loss

-83959366.71-57939915.37

expressed with "-")

Asset impairment loss (loss

expressed with "-")

Gains from disposal of assets

-6201002.364927280.24

(loss expressed with "-")

III. Operating profit (loss expressed with

2243373665.842081114934.02

"-")

Plus: Non-operating revenue 4157614.19 5221955.01

Less: Non-operating expenses 54367929.24 37784277.75

IV. Total profit (total loss expressed with

2193163350.792048552611.28

"-")

Less: Income tax expense 389834341.82 360337560.24

V. Net profit (net loss expressed with "-") 1803329008.97 1688215051.04

(I) Classification by continuity of

operation

1. Net profit from continuing

1803329008.971688215051.04

operations (net loss expressed with "-")

2. Net profit from discontinued

operations (net loss expressed with "-")

(II) Classification by ownership

1. Net profit attributable to

shareholders of the parent company (net 1814826860.86 1696020589.20

loss expressed with "-")

2. Profit or loss attributable to

minority interests (net loss expressed -11497851.89 -7805538.16

with "-")

VI. Net of tax of other comprehensive

23756112.05-6285502.28

income

Net of tax of other comprehensive

income attributable to the owner of the 23756112.05 -6285502.28

parent company

(I) Other comprehensive income

that cannot be reclassified into the profits -171215.68

and losses

1. Change from re-measurement

of defined benefit plan

2. Other comprehensive income

that cannot be included into the profits

and losses under the equity method

3. Changes in fair value of

-171215.68

investment in other equity instruments

4. Changes in fair value by the

enterprise's credit risks

5. Others

(II) Other comprehensive income

that will be reclassified into the profits 23927327.73 -6285502.28

and losses

1. Other comprehensive income

that can be included into the profits and 1326766.89

losses under the equity method

130Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

2. Changes in fair value of other

debt investment

3. Financial assets reclassified

into other comprehensive income

4. Provision for credit impairment

of other debt investments

5. Cash flow hedging reserves

6. Differences in translation of

23927327.73-7612269.17

foreign currency financial statements

7. Others

Net of tax of other comprehensive

income attributable to minority

shareholders

VII. Total comprehensive income 1827085121.02 1681929548.76

Total comprehensive income

attributable to the owner of the parent 1838582972.91 1689735086.92

company

Total comprehensive income

-11497851.89-7805538.16

attributable to minority shareholders

VIII. Earnings per share:

(I) Basic earnings per share 1.0293 0.9675

(II) Diluted earnings per share 1.0346 0.9686

If there is a business combination under common control in this period the net profit of the combined party before the

combination is RMB 0.00 and the net profit of the combined party in the previous period is RMB 0.00.Legal representative: Lv Liang Person in charge of accounting: Lv Liang Person in charge of the accounting department:

Qiu Renbo

4. Profit statement of the parent company

Unit: RMB

Item First half of 2025 First half of 2024

I. Operating revenue 11924816596.23 11394995446.30

Less: Operating cost 11319964972.46 10768645517.84

Taxes and surcharges 12340230.92 14643641.79

Selling expenses 236318613.02 204454181.04

Management expenses 84584023.83 91647034.58

R&D expenses

Financial expenses -119960930.02 -12375772.11

Incl.: Interest expense 17223303.45 29281312.24

Interest income 5044375.26 44142368.81

Plus: Other incomes 10728229.03 9058950.35

Investment income (loss

2206749733.141067439548.33

expressed with "-")

Incl.: Investment income in

977686.70-12860749.73

associates and joint ventures

Income from

derecognition of financial assets

measured on the basis of amortized cost

(loss expressed with "-")

Net exposure hedging gains (loss

131Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

expressed with "－")

Gains from changes in fair value

(loss expressed with "-")

Credit impairment loss (loss

-223466792.26-84295275.84

expressed with "-")

Asset impairment loss (loss

expressed with "-")

Gains from disposal of assets

-278243.931434977.91

(loss expressed with "-")

II. Operating profit (loss expressed with

2385302612.001321619043.91

"-")

Plus: Non-operating revenue 17931.33 41123.57

Less: Non-operating expenses 12363241.49 6248443.03

III. Total profit (total loss expressed with

2372957301.841315411724.45

"-")

Less: Income tax expense 97197219.33 94448009.36

IV. Net profit (net loss expressed with "-

2275760082.511220963715.09

")

(I) Net profits from continuing

2275760082.511220963715.09

operations (net loss expressed with "-")

(II) Net profit from discontinued

operations (net loss expressed with "-")

V. Net of tax of other comprehensive

income

(I) Other comprehensive income

that cannot be reclassified into the profits

and losses

1. Change from re-measurement

of defined benefit plan

2. Other comprehensive income

that cannot be included into the profits

and losses under the equity method

3. Changes in fair value of

investment in other equity instruments

4. Changes in fair value by the

enterprise's credit risks

5. Others

(II) Other comprehensive income

that will be reclassified into the profits

and losses

1. Other comprehensive income

that can be included into the profits and

losses under the equity method

2. Changes in fair value of other

debt investment

3. Financial assets reclassified

into other comprehensive income

4. Provision for credit impairment

of other debt investments

5. Cash flow hedging reserves

6. Differences in translation of

foreign currency financial statements

7. Others

VI. Total comprehensive income 2275760082.51 1220963715.09

132Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

VII. Earnings per share:

(I) Basic earnings per share

(II) Diluted earnings per share

5. Consolidated cash flow statement

Unit: RMB

Item First half of 2025 First half of 2024

I. Cash flows from operating activities:

Cash received from selling goods and

23043949397.0821640152875.03

providing services

Net increase in deposits from

customers as well as banks and other

financial institutions

Net increase in borrowings from the

central bank

Net increase in borrowings from other

financial institutions

Cash received from the original

insurance contract premium

Net cash received from reinsurance

business

Net increase in deposits and

investments from policyholders

Cash received from interests handling

charges and commissions

Net increase in borrowings from banks

and other financial institutions

Net increase in funds from repurchase

business

Net cash received from securities

trading agency

Refund of taxes and fees received 5110647.25 8235381.72

Receipt of other cash relating to

311722673.58239783680.99

operating activities

Subtotal of cash inflows from operating

23360782717.9121888171937.74

activities

Cash paid for purchase of goods and

13943183727.9113604550741.22

receipt of labor services

Net increase in customer loans and

advance payments

Net increase in deposits with the

central bank and interbank

Cash for payment of the original

insurance contract

Net increase in lendings to banks and

other financial institutions

Cash paid for interests handling

charges and commissions

Cash for payment of dividends on

policies

Cash paid to and for employees 2692040129.25 2323118629.52

133Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Various taxes and fees paid 1576435543.90 1477481035.41

Payment of other cash relating to

2692274806.752207765050.15

operating activities

Subtotal of cash outflows from operating

20903934207.8119612915456.30

activities

Net cash flow from operating activities 2456848510.10 2275256481.44

II. Cash flows from investing activities:

Cash received from investment

3000000.00

recovery

Cash received from obtaining

47347567.6727900000.00

investment income

Net cash recovered from disposal of

fixed assets intangible assets and other 10814966.49 6946255.32

long-term assets

Net cash received from disposal of

subsidiaries and other business units

Receipt of other cash relating to

255959940.22

investing activities

Subtotal of cash inflows from investing

58162534.16293806195.54

activities

Cash paid for the purchase and

construction of fixed assets intangible 788358827.36 658042086.97

assets and other long-term assets

Cash paid for investment 61560775.00 147660247.99

Net increase in pledged loans

Net cash paid for the acquisition of

subsidiaries and other business entities

Payments of other cash relating to

157607933.95

investing activities

Subtotal of cash outflows from investing

849919602.36963310268.91

activities

Net cash flows from investing activities -791757068.20 -669504073.37

III. Cash flows from financing activities:

Cash received by absorbing

investment

Incl.: Cash received by subsidiaries

from minority shareholders' investment

Cash received from obtaining

1720372646.922552138017.63

borrowings

Receipt of other cash relating to

217401111.10291490536.33

financing activities

Subtotal of cash inflows from financing

1937773758.022843628553.96

activities

Cash paid for debt repayment 1728740028.90 1988027915.09

Cash paid to distribute dividends

1057608222.251082542915.33

profits or pay interest

Incl.: Dividends and profits paid by

2760660.00

subsidiaries to minority shareholders

Payment of other cash relating to

684856705.37260287332.28

financing activities

Subtotal of cash outflows from financing

3471204956.523330858162.70

activities

Net cash flow from financing activities -1533431198.50 -487229608.74

IV. Effect of exchange rate changes on

-116843004.40-5787341.62

cash and cash equivalents

V. Net increase in cash and cash 14817239.00 1112735457.71

134Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

equivalents

Plus: Opening balance of cash and

4990151186.684208160010.91

cash equivalents

VI. Closing balance of cash and cash

5004968425.685320895468.62

equivalents

6. Cash flow statement of the parent company

Unit: RMB

Item First half of 2025 First half of 2024

I. Cash flows from operating activities:

Cash received from selling goods and

12852057702.5512022456324.57

providing services

Refund of taxes and fees received

Receipt of other cash relating to

81235533.54112386980.37

operating activities

Subtotal of cash inflows from operating

12933293236.0912134843304.94

activities

Cash paid for the purchase of goods

11701705674.9711234484512.22

and the receipt of labor services

Cash paid to and for employees 152400783.19 181096779.79

Various taxes and fees paid 154375654.03 261460389.34

Payment of other cash relating to

259455509.87109374865.51

operating activities

Subtotal of cash outflows from operating

12267937622.0611786416546.86

activities

Net cash flow from operating activities 665355614.03 348426758.08

II. Cash flows from investing activities:

Cash received from investment

recovery

Cash received from obtaining

197347567.671028373340.00

investment income

Net cash recovered from disposal of

fixed assets intangible assets and other 60172.90 1779570.00

long-term assets

Net cash received from disposal of

subsidiaries and other business units

Receipt of other cash relating to

646911010.54927233012.13

investing activities

Subtotal of cash inflows from investing

844318751.111957385922.13

activities

Cash paid for the purchase and

construction of fixed assets intangible 104186490.92 82128743.63

assets and other long-term assets

Cash paid for investment 160000000.00 35000000.00

Net cash paid for the acquisition of

subsidiaries and other business entities

Payments of other cash relating to

1108831020.00829431410.00

investing activities

Subtotal of cash outflows from investing

1373017510.92946560153.63

activities

Net cash flows from investing activities -528698759.81 1010825768.50

III. Cash flows from financing activities:

Cash received by absorbing

investment

Cash received from obtaining 849998846.92 1819976876.04

135Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

borrowings

Receipt of other cash relating to

7420914030.584325139018.15

financing activities

Subtotal of cash inflows from financing

8270912877.506145115894.19

activities

Cash paid for debt repayment 899998846.92 1574976876.04

Cash paid to distribute dividends

1035935768.081046668681.07

profits or pay interest

Payment of other cash relating to

6479986464.743648651342.87

financing activities

Subtotal of cash outflows from financing

8415921079.746270296899.98

activities

Net cash flow from financing activities -145008202.24 -125181005.79

IV. Effect of exchange rate changes on

cash and cash equivalents

V. Net increase in cash and cash

-8351348.021234071520.79

equivalents

Plus: Opening balance of cash and

3940066700.232946999653.10

cash equivalents

VI. Closing balance of cash and cash

3931715352.214181071173.89

equivalents

7. Consolidated statement of changes in owners' equity

Amount in the current period

Unit: RMB

First half of 2025

Owner's equity attributable to the parent company

Other equity Oth Tota

instruments Less er

Gen Min l

Item Shar Capi : com Spe Surp Reta

Pref Perp eral ority owne tal Trea preh cial lus ined Oth Subt

erre etua risk inter ers'capi Oth rese sury ensi rese rese earn ers otalrese estsd l equital ers rve shar ve rves rves ings

shar bon rves tye inco

e ds me

-174230235

175255468139503

I. Closing 505 568 600 637

426078041556703

balance of 982 420 513 549

25406016.6847514.

the prior year 04.1 89.5 97.3 12.1

8.002.6977.9876

7362

Plus:

Changes in

accounting

policies

Co

rrection of

prior period

errors

Ot

hers

175255468-139174230503235

II. Opening 426 078 041 505 556 568 600 703 637

balance of 254 060 16.6 982 847 420 513 514. 549

136Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

the current 8.00 2.69 7 04.1 7.98 89.5 97.3 76 12.1

year 7 3 6 2

III. Increase

or decrease - -

--237797691551

in the current 133 140

185463561462866251

period 802 614

500.53212.0173.000.585.

(decrease 109. 414.

005.005026497

expressed 43 67

with "-")

-

237181183182

(I) Total 114

561482858708

comprehensi 978

12.0686297512

ve income 51.8

50.862.911.02

9

(II) Owner's

----

investment 267 264

185177463289

and 411 515

500.57153260.7

reduction of 3.56 2.79

001.445.007

capital

1. Common - - -

stocks 185 185 185

invested by 500. 500. 500.the owner 00 00 00

2. Capital

invested by

holders of

other equity

instruments

3. Amount of

share-based -

267267264

payment 289

411411515

included in 60.7

3.563.562.79

owner's 7

equity

--

185185

444463

4. Others 500. 500.

982532

0000

5.005.00

---

-

101101102

(III) Profit 911

736736647

distribution 400

468468868

0.00

7.847.847.84

1. Provision

for surplus

reserves

2. Provision

for general

risk reserves

---

3.-

101101102

Distribution 911

736736647

to owners (or 400

468468868

shareholders) 0.00

7.847.847.84

4. Others

137Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

(IV) Internal

carry-over of

owners’

equity

1.

Conversion

of capital

reserve to

capital (or

share capital)

2.

Conversion

of surplus

reserve to

capital (or

share capital)

3. Losses

covered by

surplus

reserve

4. Changes

in the

defined

benefit plan

transferred to

retained

earnings

5. Other

comprehensi

ve income

carried

forward to

retained

earnings

6. Others

(V) Special

reserves

1. Amount

withdrawn in

the current

period

2. Amount

utilized in

the current

period

----

132132119252

(VI) Others 026 026 973 000

397.397.602.000.

99990100

IV. Closing 175 241 421 - 139 182 237 363 241

balance in 407 697 687 268 556 543 519 089 150

the current 704 849 91.6 420 847 042 173 100. 064

period 8.00 3.26 7 92.1 7.98 62.5 98.0 09 98.0

138Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

2509

Amount of the prior year

Unit: RMB

First half of 2024

Owner's equity attributable to the parent company

Other equity Oth Tota

instruments Less er

Gen Min l

Item Shar Capi : com Spe Surp Reta

Pref Perp eral ority owne tal Trea preh cial lus ined Oth Subt

erre etua risk inter ers'capi Oth rese sury ensi rese rese earn ers otal

d l rese ests equital ers rve shar ve rves rves ings

shar bon rves tye inco

e ds me

-156210215

175244845127534

I. Closing 403 939 476 822

442631193777654

balance of 415 515 097 647

53437769.0997969.

the prior year 44.1 74.9 56.6 26.1

8.004.8272.1844

8160

Plus:

Changes in

accounting

policies

Co

rrection of

prior period

errors

Ot

hers

-156210215

II. Opening 175 244 845 127 534

403939476822

balance of 442 631 193 777 654

415515097647

the current 534 377 69.0 997 969.

44.174.956.626.1

year 8.00 4.82 7 2.18 44

8160

III. Increase

or decrease -

-380--678712699

in the current 136

978840244628538684006

period 786

00.060.0500550973.731.106.

(decrease 24.8

000.002.28360821

expressed 7

with "-")

-169168-168

(I) Total

628602973780192

comprehensi

550058508553954

ve income

2.289.206.928.168.76

(II) Owner's

--103104

investment 801 121

978244630846

and 584 573.

00.050048.221.5

reduction of 8.21 29

00.0010

capital

1. Common - - - -

stocks 978 234 244 244

invested by 00.0 720 500 500

the owner 0 0.00 0.00 0.00

139Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

2. Capital

invested by

holders of

other equity

instruments

3. Amount of

share-based 103 103 104

121

payment 630 630 846

573.

included in 48.2 48.2 21.5

29

owner's 1 1 0

equity

-

244244

244

4. Others 500 500

500

0.000.00

0.00

---

-

101101102

(III) Profit 599

748748347

distribution 466

161161627

0.00

5.845.845.84

1. Provision

for surplus

reserves

2. Provision

for general

risk reserves

---

3.-

101101102

Distribution 599

748748347

to owners (or 466

161161627

shareholders) 0.00

5.845.845.84

4. Others

(IV) Internal

carry-over of

owners’

equity

1.

Conversion

of capital

reserve to

capital (or

share capital)

2.

Conversion

of surplus

reserve to

capital (or

share capital)

3. Losses

covered by

surplus

reserve

4. Changes

in the

140Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

defined

benefit plan

transferred to

retained

earnings

5. Other

comprehensi

ve income

carried

forward to

retained

earnings

6. Others

(V) Special

reserves

1. Amount

withdrawn in

the current

period

2. Amount

utilized in

the current

period

300300300

682682682

(VI) Others

11.711.711.7

999

-163217222

IV. Closing 175 248 820 127 520

466724602812

balance in 432 439 743 777 976

270905944708

the current 754 783 69.0 997 344.

46.448.287.732.3

period 8.00 4.82 7 2.18 57

6741

8. Statement of changes in owner’s equity of the parent company

Amount in the current period

Unit: RMB

First half of 2025

Other equity instruments Other

Capita Less: compr Specia Surplu Retain Total

Item Share Prefer Perpet l Treasu ehensi l s ed ownerOthers

capital red ual Others reserv ry ve reserv reserv earnin s'

share bonds e share incom es es gs equity

e

I. Closing 1754 2346 4680 1473 6058 11585

balance of 2625 4434 4116. 4242 4105 7366

the prior year 48.00 94.22 67 37.42 35.83 98.80

Plus:

Changes in

accounting

policies

Co

141Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

rrection of

prior period

errors

Ot

hers

II. Opening

1754234646801473605811585

balance of

262544344116.424241057366

the current

48.0094.226737.4235.8398.80

year

III. Increase

or decrease

--

in the current - 1258 1261

18044635

period 1855 3953 0405

672.2325.0

(decrease 00.00 94.67 47.45

20

expressed

with "-")

(I) Total 2275 2275

comprehensi 7600 7600

ve income 82.51 82.51

(II) Owner's

--

investment - 2645

18044635

and 1855 152.7

672.2325.0

reduction of 00.00 8

20

capital

1. Common

--

stocks

18551855

invested by

00.0000.00

the owner

2. Capital

invested by

holders of

other equity

instruments

3. Amount of

share-based - -

payment 1804 1804

included in 672.2 672.2

owner's 2 2

equity

-

4635

4635

4. Others 325.0

325.0

0

0

--

(III) Profit 1017 1017

distribution 3646 3646

87.8487.84

1. Provision

for surplus

reserves

2.--

Distribution 1017 1017

to owners (or 3646 3646

shareholders) 87.84 87.84

142Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

3. Others

(IV) Internal

carry-over of

owners’

equity

1.

Conversion

of capital

reserve to

capital (or

share capital)

2.

Conversion

of surplus

reserve to

capital (or

share capital)

3. Losses

covered by

surplus

reserve

4. Changes

in the

defined

benefit plan

transferred to

retained

earnings

5. Other

comprehensi

ve income

carried

forward to

retained

earnings

6. Others

(V) Special

reserves

1. Amount

withdrawn in

the current

period

2. Amount

utilized in

the current

period

(VI) Others

IV. Closing 1284

17542344421614737316

balance in 6777

077063888791.42428059

the current 246.2

48.0022.006737.4230.50

period 5

Amount of the prior year

143Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

Unit: RMB

First half of 2024

Other equity instruments Other

Capita Less: compr Specia Surplu Retain Total

Item Share Prefer Perpet l Treasu ehensi l s ed ownerOthers

capital red ual Others reserv ry ve reserv reserv earnin s'

share bonds e share incom es es gs equity

e

I. Closing 1754 2329 8451 1355 6629 11984

balance of 4253 3619 9369. 6357 7396 6433

the prior year 48.00 69.66 07 31.62 41.30 21.51

Plus:

Changes in

accounting

policies

Co

rrection of

prior period

errors

Ot

hers

II. Opening

1754232984511355662911984

balance of

425336199369.635773966433

the current

48.0069.660731.6241.3021.51

year

III. Increase

or decrease

-

in the current - 8137 2034 2139

2445

period 9780 421.5 8209 6672

000.0

(decrease 0.00 0 9.25 0.75

0

expressed

with "-")

(I) Total 1220 1220

comprehensi 9637 9637

ve income 15.09 15.09

(II) Owner's

-

investment - 8137 1048

2445

and 9780 421.5 4621.

000.0

reduction of 0.00 0 50

0

capital

1. Common - -

-

stocks 2347 2445

9780

invested by 200.0 000.0

0.00

the owner 0 0

2. Capital

invested by

holders of

other equity

instruments

3. Amount of 1048 1048

share-based 4621. 4621.payment 50 50

included in

144Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

owner's

equity

-

2445

2445

4. Others 000.0

000.0

0

0

--

(III) Profit 1017 1017

distribution 4816 4816

15.8415.84

1. Provision

for surplus

reserves

2.--

Distribution 1017 1017

to owners (or 4816 4816

shareholders) 15.84 15.84

3. Others

(IV) Internal

carry-over of

owners’

equity

1.

Conversion

of capital

reserve to

capital (or

share capital)

2.

Conversion

of surplus

reserve to

capital (or

share capital)

3. Losses

covered by

surplus

reserve

4. Changes

in the

defined

benefit plan

transferred to

retained

earnings

5. Other

comprehensi

ve income

carried

forward to

retained

earnings

6. Others

(V) Special

145Full text of the 2025 Semi-annual Report of Huadong Medicine Co. Ltd.

reserves

1. Amount

withdrawn in

the current

period

2. Amount

utilized in

the current

period

(VI) Others

IV. Closing 1219

17542337820713556833

balance in 8610

327549934369.63572217

the current 042.2

48.0091.160731.6240.55

period 6

III. Basic information of the Company

Huadong Medicine Co. Ltd. (hereinafter referred to as the "Company") was formerly known as Hangzhou

Medicine Station Co. Ltd. established as a directed share issuance company in March 1993. It was registered

with the Zhejiang Provincial Administration for Industry and Commerce on March 31 1993 with its

headquarters located in Hangzhou Zhejiang. The Company currently holds a business license with the Unified

Social Credit Code of 91330000143083157E a registered capital of RMB 1754077048.00 and a total of

1754077048.00 shares (par value of RMB 1 per share). As of June 30 2025 the tradable shares with

restricted sale conditions were 2135820.00 A-shares while the tradable shares without restricted sale

conditions were 1751941228.00 A-shares. The Company's shares were listed on the Shenzhen Stock

Exchange on January 27 2000.The Company operates in the pharmaceutical industry and the main business activities include the

research development manufacturing and sales of pharmaceutical products.These financial statements were approved by the second meeting of the eleventh session of the Board of

Directors on August 18 2025.Lv Liang Chairman

August 20 2025

146